Vishal Fabrics Ltd posts Q2 net profit of Rs 11 crore
Vishal Fabrics Ltd witnessed a 44 percent decline in its net profit to Rs 11 crore ($1.4 million) for the second quarter ended September 2022, as against a net profit of Rs 20 crore reported in the year-ago period.
The company’s revenue for the quarter declined by 14 percent to Rs 343 crore, as against Rs 400 crore reported in the corresponding period of the previous fiscal year.
Commenting on the Q2 results, Brijmohan Chiripal, managing director of Vishal Fabrics in a statement said, “During the quarter, the overall demand scenario remained muted owing to ongoing economic challenges, volatile cotton prices and global inflationary pressures. As a result, our capacity utilization levels were on the lower side, impacting our margins negatively.”
“We are ready to sail through these challenging times with a comfortable level of debt-equity ratio at 0.98x. Although the short-term headwinds may continue, we remain confident about the long-term growth prospects for the Indian textile sector as well as our capacity to raise utilization levels and get back the revenues at normalcy,” he added.
The Ahmedabad-based Vishal Fabrics Limited (VFL) is a flagship company of the Chiripal Group. The company does business with various brands such as Jack & Jones, Flipkart, Myntra, Aditya Birla Group, Pantaloons, and Lifestyle, among others.
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