Vakrangee Q1 net profit rises eight-fold as operating margin improves

saumyasingh July 15, 2023

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Vakrangee Q1 net profit rises eight-fold as operating margin improves

Vakrangee, a financial services distributor, reported its financial results for the first quarter of the financial year 2023-24 on July 15. The company’s consolidated profit after tax (PAT) for the quarter amounted to Rs 49 lakh. This figure represents a significant year-on-year (YoY) increase of 716.67 percent.

The company attributed this growth in profitability to improved operating margins. Operating margins typically reflect the efficiency of a company’s operations and its ability to control costs.

Welcome to Vakrangee

To summarize, Vakrangee recorded a consolidated PAT of Rs 49 lakh for the first quarter of the financial year 2023-24, reflecting a notable YoY increase of 716.67 percent. The improved profitability was primarily driven by enhanced operating margins.

During the June quarter, Vakrangee reported a total income of Rs 55.90 crore, representing a growth of 14.74 percent compared to the same period in the previous year. Total income refers to the overall revenue generated by the company from its various business activities.

The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) for the quarter amounted to Rs 6.93 crore, indicating a substantial increase of 56.08 percent compared to the year-ago quarter. EBITDA is a measure of a company’s operating performance and profitability before accounting for interest, taxes, depreciation, and amortization expenses.

In summary, Vakrangee recorded a total income of Rs 55.90 crore during the June quarter, representing a growth of 14.74 percent compared to the same period in the previous year. Additionally, the company’s EBITDA for the quarter amounted to Rs 6.93 crore, reflecting a significant increase of 56.08 percent from the year-ago quarter.

Vakrangee launches an online services platform

Vakrangee reported that its Gross Transaction Value (GTV) for the quarter surpassed Rs 14,920.74 crore, indicating a substantial increase in transaction volume. The company also stated that the number of transactions for the quarter exceeded 3.32 crore, reflecting a significant level of activity within its operations.

In terms of profitability, Vakrangee highlighted an improvement on a year-on-year (YoY) basis. The company attributed this improvement to the growth in operating margins. Vakrangee expressed confidence that its margins and profitability would continue to improve as it expands its network and benefits from operating leverage.

Vakrangee declared a dividend of 5 paise per share for the financial year 2022-23. It is worth noting that the dividend announcement is subject to approval at the annual general meeting (AGM) of the company. The AGM is a forum where shareholders have the final decision on matters like dividend distribution.

In summary, Vakrangee reported notable growth in Gross Transaction Value and the number of transactions for the quarter. The company expressed optimism about its improving profitability and operating margins. It also announced a dividend of 5 paise per share for FY 2022-23, pending approval at the annual general meeting. Shareholders will have the ultimate say in approving the dividend distribution.

The company said its focus has been on expanding its presence through the master franchisee network and strengthening its first-mover advantage. It is building a pan-India district-level master franchisee network, which would result in on-ground solid operational management and better scalability.

Vakrangee has set a target to achieve 100 percent district coverage in India by March 2024. Currently, the company operates in 292 districts across 28 states. By expanding its footprint to cover all districts, Vakrangee aims to establish a comprehensive presence throughout the country.

On July 14, Vakrangee’s stock closed at Rs 16.75 on the National Stock Exchange, which represented a 3.08 percent increase compared to the previous closing price. It is worth noting that stock prices are influenced by various factors, such as investor sentiment, company performance, and overall market conditions. These factors can lead to fluctuations in stock prices.

Vakrangee has outlined a target of achieving complete district coverage across India by March 2024. Currently, the company operates in 292 districts spanning 28 states. The aim is to establish a comprehensive presence throughout the country, which would enable Vakrangee to expand its reach and enhance its services.

In summary, Vakrangee’s stock experienced a 3.08 percent increase on July 14. The company is focused on achieving full district coverage in India by March 2024, as it currently operates in 292 districts across 28 states. It is important to note that stock prices are subject to fluctuations, and the company’s progress towards its target will depend on various factors in the market and its operational performance.