Vadilal Q4 net loss widens Rs 3.1 cr

Firm had posted a loss of Rs 2.3 cr in year-ago quarter; FY16 PAT rises six times to Rs 14.4 cr

Ice cream and frozen foods major, Vadilal Industries Limited, reported a net loss of Rs 3.1 crore for the quarter ended March 31, 2016 as against a net loss of Rs 2.3 crore in the corresponding quarter last fiscal. Net sales for the quarter, however, was higher by 15.1 per cent to Rs 89.7 crore. Increase in employee benefits expense (38.7 per cent) and other expenditure (25.3 per cent) has led to fall in EBIDTA margins and thereby higher loss this quarter.

However, on yearly basis, the same growth figures are not reflected in both the components.

For the full year, the company reported more than six times growth in net profit to Rs. 14.4 crore for the full year 2015-2016, as compared to Rs 1.9 crore in the last year. Net sales for the full year stood at Rs. 444.5 crore, up by 10.2 per cent compared to Rs. 403.4 crore last year. EBIDTA for full year was Rs. 58.9 crore, up 33.9 per cent against Rs. 44 crore last year.The Company announced 12.5% or Rs 1.25 per share dividend for FY16.

 

An important point to note is reduction in finance costs, which has led to better growth in PAT for the full year.

Commenting on the financial performance of the company, Rajesh Gandhi, chairman & managing director of Vadilal Industries Ltd. said, "We have been able to achieve a big jump in profit margins and profits due to lower prices of major inputs for making ice cream as well as a reduction in our interest outgo. We are targeting a 20 per cent growth in sales in current fiscal and hope to maintain profit margins. In the previous few years, we had made large investments in capacity expansion as well as automation technology and these are now paying off."

Devanshu Gandhi, Managing Director of Vadilal Industries Ltd. added, "We have recently signed up Parineeti Chopra as our brand ambassador to give a youthful image to the company and this will lead to much greater recall amongst consumers and consequently generate higher sales. We are focusing on higher value products; accelerating new product development and increasing spend on promotional activities."