Vadilal Industries hits record high in weak market; zooms 114% in 6 months

For the entire financial year 2021-22, Vadilal Industries reported nearly 10-fold jump in net profit at Rs 44.70 crore from Rs 4.63 crore in FY21

Shares of Vadilal Industries hit a record high of Rs 2,139, surging 5 per cent on the BSE in Friday's intra-day trade, on improved business outlook. The stock of the dairy products' company has zoomed 114 per cent over the past six months, propelled by strong earnings for the quarter and year ended March 2022.

At 02:07 PM, Vadilal Industries was trading 3 per cent higher at Rs 2,094, as compared to 1.9 per cent decline in the S&P BSE Sensex.

For January-March quarter (Q4FY22), the company had reported 31 per cent year-on-year (YoY) jump in consolidated profit after tax (PAT) at Rs 21.69 crore against Rs 16.54 crore in Q4FY21. It had posted net loss of Rs 2.40 crore in the previous quarter. The company’s revenue grew 26 per cent YoY at Rs 213 crore from Rs 169 crore in the year-ago quarter.

For the entire financial year 2021-22 (FY22), Vadilal Industries' PAT jumped nearly 10-fold to Rs 44.70 crore from Rs 4.63 crore in FY21. Revenue from operations rose 51 per cent YoY to Rs 698 crore from Rs 463 crore.

Vadilal has presence in over 45 countries including the countries in North and South America, Europe including the UK, the Middle East, South East Asia, and Australasia.

Vadilal Industries had said that the business of Holding Company was impacted during the financial year on account of second wave of Covid-19 and the Holding Company witnessed lower revenues in domestic ice-cream business in April and May 2021 being the peak period of the ice-cream business.

"The ever-growing urbanization, rise in disposable income, and increase in the "out of home food" consumption coupled with the steep increase in the availability of multi cuisine restaurants, online portals in the residential areas are some of the reasons behind the thriving ice cream industry," the management said.

Compared to western countries, per capita Ice cream consumption in India is low. So, considering the fact that still In India there is huge scope of ice cream market expansion and penetration with innovative product mix to attract India with all class & mass of consumers, it added.