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Key Points

Vedant Fashions, the ethnic wear brand owner, experienced a challenging fourth quarter with a 12.6% net profit drop. Rising raw material costs and increased expenses contributed to the financial performance decline. The company maintains a significant retail presence with over 600 stores across India and international markets. Despite the quarter's challenges, Vedant Fashions proposed a final dividend of Rs 8 per equity share, demonstrating ongoing shareholder commitment.

Key Points: Vedant Fashions Q4 Profit Drops 12.6% Amid Rising Costs

  • Profits decline to Rs 101 crore from Rs 116 crore
  • Revenue remains nearly flat at Rs 367.4 crore
  • EBITDA margins contract to 45% from 48%
2 min read

Vedant Fashions reports 12.6 pc drop in Q4 net profit amid rising costs

Manyavar parent Vedant Fashions reports Q4 net profit decline, flat revenue, and increased expenses impacting financial performance

"Our performance reflects challenging market conditions - Vedant Fashions Management"

Mumbai, May 6

Vedant Fashions Limited, the company behind the ethnic wear brand Manyavar, on Tuesday, reported a 12.6 per cent decline in net profit for the fourth quarter (Q4) of FY25.

The net profit stood at Rs 101 crore, down from Rs 116 crore in the same quarter last fiscal, according to its stock exchange filings.

Revenue for the quarter remained nearly flat, increasing by just 1.2 per cent to Rs 367.4 crore from Rs 363 crore in Q4 FY24.

Earnings before interest, tax, depreciation, and amortisation (EBITDA) also saw a decline of 5.3 per cent, falling to Rs 165.7 crore.

As a result, EBITDA margins contracted to 45 per cent from 48 per cent a year ago -- reflecting decreased operating efficiency.

Total expenses rose by 6.45 per cent year-on-year (YoY) to Rs 254.79 crore in the fourth quarter of FY25.

The cost of raw materials consumed increased by 19.01 per cent to Rs 45.01 crore, while finance costs went up by 3.06 per cent to Rs 136.23 crore during the same period.

The Board has proposed a final dividend of Rs 8 per equity share for FY25, subject to shareholder approval at the upcoming Annual General Meeting (AGM).

Following the announcement of these results, Vedant Fashions' share price dropped to Rs 735 -- marking a 6.88 per cent or Rs 54.3 decrease from the previous close of Rs 790.15 on the National Stock Exchange (NSE).

Vedant Fashions primarily manufactures, trades, and sells ready-to-wear ethnic clothing for men, women, and children in India through its brands Manyavar, Mohey, Mebaz, Twamev, and Manthan.

The company has over 600 stores in more than 200 cities, including 11 international outlets in the UAE and the US.

The shares of Vedant Fashions were listed on stock exchanges in 2022. The company had made a strong debut by listing over 8 per cent premium at Rs 935 from its issue price of Rs 866.

- IANS

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Reader Comments

R
Rahul K.
Not surprised by the drop in profits. Manyavar's prices have gone up significantly in the last 2 years while quality hasn't improved much. ₹8,000-10,000 for a simple kurta is too much for middle-class families. Hope they reconsider their pricing strategy.
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Priya M.
Their Mohey bridal collection is still the best in market! 💯 But yes, costs are rising everywhere. Maybe they should focus more on online sales to reduce store expenses? #EthnicWear
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Arjun S.
As a shareholder, this is concerning. The 19% increase in raw material costs is worrying - management needs to explain how they plan to tackle this. The dividend is decent but we need better cost control measures.
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Shweta R.
Their designs are getting repetitive now. Every season same old prints with minor changes. Need more innovation to justify premium pricing. Many local brands offering similar quality at 40% less price.
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Vikram J.
The wedding season was slow this year across India - that must have impacted sales. Plus people are cutting down on discretionary spending. Not entirely company's fault, market conditions are tough.
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Neha T.
Their international expansion seems promising though! 🇮🇳➡️🌍 If they can capture NRI market properly, future growth might compensate for domestic slowdown. But need better supply chain management.

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