Vardhaman Textiles Q2 strong yarn performance fuels profit growth

Vardhaman Textiles announced robust Q2 results on October 30, 2024, showcasing a 4.38 per cent year-over-year (YoY) revenue increase to Rs 2,502.42 crore, largely driven by strong demand for its yarn products. The company experienced a remarkable 46.57 per cent YoY profit surge, reflecting effective operational strategies in the textile sector.

While revenue grew by 8.4 per cent quarter-on-quarter (QoQ), net income fell 17.47 per cent QoQ indicating fluctuations in short-term performance despite solid annual growth. Earnings per share increased by 46.61 per cent YoY to Rs 6.92, highlighting operational efficiency and strong market positioning.

Selling, General, and Administrative expenses rose 3.55 per cent QoQ and 11.17 per cent YoY as the company continued to invest in enhancing yarn production capabilities and customer engagement. Operating income declined 14.15 per cent QoQ but saw a significant 111.99 per cent YoY increase, underscoring Vardhaman's focus on profitability.

With a market capitalization of Rs 13,247.1 crore and a share range of Rs 592 (high) to Rs 352.05 (low), Vardhaman has shown resilience in the textile industry. The company has delivered a 6.62 per cent return over the last week and an impressive 18.63 per cent year-to-date. Analyst sentiment remains mixed, indicating varied outlooks on Vardhaman's future in the yarn market.