Vakrangee freezes at 5% upper circuit as Q4 profit grows 4-fold YoY

Shares of Vakrangee were locked in the 5 per cent upper circuit band at Rs 29.7 on the BSE on Monday after its net profit jumped 383 per cent year-on-year (YoY) to Rs 31.16 crore in the March quarter of FY20, as against Rs 6.45 crore-profit in Q4FY19. In comparison, the benchmark S&P BSE Sensex was down 395 points, or 1 per cent, at 37,212 level at 10:55 am.

The specialty retail's revenue from operations stood at Rs 207.39 crore in Q4FY20, as against Rs 101.46 crore for the corresponding quarter last year, registering a growth of 104.32 per cent. Besides, its EBITDA (earnings before interest, tax, depreciation, and amortisation) clocked a 69.87 per cent growth to Rs 31.63 crore compared to Rs 18.62 crore for the corresponding quarter last year.

On a sequential basis, revenue from operations jumped 4.11 per cent to Rs 207.39 crore in Q4FY2019-20 as against Rs 199.20 crore for the preceding quarter current year, while PAT stood at Rs 31.16 crore in Q4FY20 as against Rs 21.44 crore for the preceding quarter current year, registering a growth of 45.34 per cent.

For the entire FY20, the company reported net profit of Rs 71.28 crore, while revenue was Rs 685.22 crore. 

"Revenue for FY20 has been impacted as the Company revamped the business to exclusive standardized NextGen Format stores... Profitability has increased by 182 per cent to Rs 71.28 crore due to positive operating leverage and as Gross profit Margin reached back to normalcy post up-gradation exercise," it said in a statement.

The company also declared Dividend of Rs 0.25 per equity share (25 per cent) of Rs 1/- each for the financial year ended March 31, 2020, subject to the members’ approval at the ensuing Annual General Meeting. 

The company also appointed Hari Chand Mittal as an Additional Director of the Company for a period of five years w.e. f. July 31, 2020. READ HERE