Vardhman Polytex Q1 results: Revenue declines 52.75%
Business: Vardhman Polytex Q1 Results announced its Q1 results on August 14, 2024. The company’s topline declined by a significant 52.75% year-on-year, leading to a loss of ₹10.75 crore for the quarter. This is a marked change from the same period last fiscal, when Vardhman Polytex had declared a profit of ₹1.05 crore. Compared to the previous quarter, revenue declined by 13.1%. Selling, general, and administrative (SG&A) expenses saw a reduction both quarterly and annually. Notably, SG&A expenses declined by 2.71% quarter-on-quarter and decreased by 32.8% year-on-year. However, this reduction was not enough to offset the decline in revenue. Operating income declined drastically, declining by 230.84% from the previous quarter and by 92.16% year-on-year. This massive drop in operating income further exacerbated the financial challenges for Vardhman Polytex in Q1. Earnings per share (EPS) for Q1 stood at ₹-0.39, reflecting a 184.78% decrease year-on-year. This negative EPS indicates significant financial stress and highlights the challenging market conditions faced by the company. Despite the quarterly setback, Vardhman Polytex has delivered mixed returns to its investors. The company has delivered a -1.83% return in the last week, but has delivered a more positive return of 41.5% in the last six months and an impressive return of 69.3% year-on-year. These figures suggest that despite the recent quarter being tough, the company has shown resilience and growth in the long term. Currently, the market capitalisation of Vardhman Polytex is ₹263.51 crore. The company’s stock has seen a 52-week high of ₹ 12.3 and a 52-week low of ₹ 4.89, indicating a volatile trading range over the last year. Investors will be keenly watching how the company handles these challenging times and returns to profitability.
