Ahmedabad, January 31, 2025
Vadilal Industries Limited (NSE: VADILALIND-EQ, BSE: 519156) has announced its
unaudited financial results for the third quarter (Q3) and nine months ended December 31, 2024. The company recorded strong revenue growth, reflecting sustained demand for its products.
Key Financial Highlights (Standalone)
| Particulars | Q3 FY25 | Q2 FY25 | Q3 FY24 | 9M FY25 | 9M FY24 |
|---|
| Revenue from Operations | ₹145.81 Cr | ₹232.27 Cr | ₹129.01 Cr | ₹729.46 Cr | ₹713.11 Cr |
| Total Income | ₹150.62 Cr | ₹237.07 Cr | ₹133.92 Cr | ₹731.48 Cr | ₹722.35 Cr |
| Profit Before Tax (PBT) | ₹9.65 Cr | ₹32.13 Cr | ₹(7.16) Cr | ₹94.69 Cr | ₹74.06 Cr |
| Net Profit | ₹7.47 Cr | ₹24.17 Cr | ₹(6.22) Cr | ₹69.92 Cr | ₹54.05 Cr |
| EPS (₹ per share) | ₹10.39 | ₹33.79 | ₹(6.22) | ₹131.92 | ₹103.02 |
Vadilal reported
a 13.0% YoY increase in revenue from operations for Q3 FY25, reaching ₹145.81 crore compared to ₹129.01 crore in Q3 FY24. However, quarter-over-quarter (QoQ) revenue declined from ₹232.27 crore in Q2 FY25 due to seasonality. The company posted a
net profit of ₹7.47 crore, a turnaround from the ₹6.22 crore loss in Q3 FY24.
Key Financial Highlights (Consolidated)
| Particulars | Q3 FY25 | Q2 FY25 | Q3 FY24 | 9M FY25 | 9M FY24 |
|---|
| Revenue from Operations | ₹203.85 Cr | ₹251.45 Cr | ₹178.34 Cr | ₹977.06 Cr | ₹916.53 Cr |
| Total Income | ₹208.34 Cr | ₹256.43 Cr | ₹178.81 Cr | ₹978.66 Cr | ₹922.09 Cr |
| PBT | ₹17.41 Cr | ₹51.81 Cr | ₹8.58 Cr | ₹172.39 Cr | ₹129.33 Cr |
| Net Profit | ₹11.93 Cr | ₹42.17 Cr | ₹7.86 Cr | ₹128.31 Cr | ₹103.55 Cr |
| EPS (₹ per share) | ₹16.60 | ₹54.23 | ₹12.86 | ₹178.54 | ₹164.60 |
On a consolidated basis, Vadilal’s revenue from operations rose
14.3% YoY to ₹203.85 crore in Q3 FY25. Net profit for the quarter stood at ₹11.93 crore, up
51.7% YoY from ₹7.86 crore in Q3 FY24.
Segmental Performance
- Standalone Business: Revenue from operations increased YoY but saw a QoQ drop due to seasonal demand variations.
- Subsidiaries' Contribution: Vadilal's subsidiaries played a significant role, with a subsidiary contributing a total revenue (before consolidation) of ₹81.83 crore and total net profit after tax of ₹6.33 crore.
Corporate Announcements & Legal Matters
- Financial Irregularities Investigation: The company continues to address allegations and counter-allegations between promoter directors regarding expenses claimed as business expenditures in FY 2014-15, 2017-18, and 2018-19. Investigations into these issues are ongoing.
- Litigation Update: Cases related to prevention of oppression and mismanagement are pending before the National Company Law Tribunal (NCLT), Ahmedabad, with a hearing scheduled for March 4, 2025.
Auditor's Review & Observations
The independent auditors, Arpit Patel & Associates, issued a
qualified conclusion, citing the ongoing financial irregularities investigation and legal disputes among promoters. However, the review confirmed that the financial statements comply with
Indian Accounting Standards (Ind AS).
Management Commentary & Strategic Outlook
Rajesh Gandhi, Managing Director of Vadilal Industries, stated:
"We are pleased with our double-digit YoY growth in both standalone and consolidated revenues. The company remains committed to operational excellence and market expansion, despite ongoing legal matters. Our focus remains on sustaining long-term profitability and driving innovation in our product offerings."
Market Positioning & Future Strategy
- Expansion Plans: Vadilal aims to enhance its distribution network and production capacity to capitalize on the rising demand for frozen desserts and dairy products.
- Cost Optimization: Efforts continue to streamline expenses and improve profit margins.
- Resolution of Legal Disputes: The company expects to resolve its pending litigation and promoter disputes in the coming quarters.
Conclusion
Despite legal challenges,
Vadilal Industries delivered robust revenue and profit growth, reflecting strong market demand and strategic execution. With ongoing expansion plans and improved profitability, the company remains well-positioned for
long-term growth.