Vaibhav Global reports 13% revenue boost and announces dividend in Q2 FY25

Vaibhav Global Limited (VGL), a prominent E-tailer of fashion jewellery, lifestyle products, and apparel, recently unveiled its Q2 FY25 financial results, showcasing solid growth across critical metrics. As of September 30, 2024, the company recorded a revenue boost of 13% year-over-year, a significant milestone supported by strategic pricing, a favourable product mix, and operational efficiencies.

The Jaipur-headquartered company highlighted a promising 9.3% rise in sales volume alongside an increased digital revenue mix, which now comprises 39% of its business-to-consumer (B2C) revenue. With gross margins at 63.5%, Vaibhav Global also reported a stable EBITDA margin of 8.7%, further underscoring its financial resilience.

For the quarter, Vaibhav Global achieved a net profit of Rs. 28 crore, reflecting continued profitability and robust operational performance. The company’s balance sheet remains robust, boasting a net cash-positive position of Rs. 100 crore. The Board declared a second interim dividend of Rs. 1.50 per equity share, maintaining a payout ratio of 89%.

Sustained Growth through Digital Strategy

The company’s emphasis on digital expansion has proven instrumental in driving growth, with digital channels now accounting for a significant portion of sales. Vaibhav Global’s customer engagement metrics also reached new heights, with a record 682,000 unique customers on a trailing twelve-month basis, marking a 51% increase compared to the prior year.

Commenting on the results, Managing Director Sunil Agrawal noted that the company’s revenue growth aligned closely with their stated guidance, attributing the success to strategic pricing, a refined product portfolio, and digital initiatives aimed at scaling customer acquisition and retention. Agrawal emphasized the impact of the company’s targeted investments, which continue to support profitability while driving expansion.

Ideal World and Mindful Souls integration

Marking the first anniversary of its acquisition of Ideal World and Mindful Souls BV, Vaibhav Global shared that both entities are performing as expected and are poised for a stronger financial outlook. This acquisition has not only expanded VGL’s footprint in the UK but also diversified its product offerings to include mindfulness and wellness segments, capturing a broader audience and complementing its existing business model.

Commitment to Social Impact and Sustainability

Beyond its financial achievements, Vaibhav Global remains committed to social and environmental impact, winning several prestigious awards this year. The company was recently recognized by the Indo-American Chamber of Commerce for its climate action initiatives and received the Environment Stewardship Award from the Jewellery World Awards at the Jewellery & Gem WORLD Hong Kong event. As part of its ‘Your Purchase Feeds…’ initiative, VGL has donated over 93 million meals globally, reflecting its dedication to social responsibility.

With a stable outlook, Vaibhav Global reiterated its commitment to achieving its full-year revenue guidance of 14-17%, emphasizing that operating leverage will continue to support these goals. As VGL advances in the global e-commerce space, its robust financial health and sustained digital investments are expected to bolster its market position and drive long-term value for shareholders.