Vaswani swings to Q4 profit, but full-year earnings halve on higher depreciation
A sharp March-quarter turnaround couldn't offset weaker annual performance. The board also approved a ₹9.87 cr preferential issue to promoters.
— 1 earlier story on Vaswani Industries Ltd. →What's new
- Q4 profit of ₹5.39 cr reverses a ₹7.96 cr loss in the prior quarter.
- Full-year profit fell to ₹4.24 cr from ₹8.60 cr, despite 13.5% revenue growth to ₹467.37 cr.
- Board approved a ₹9.87 cr preferential allotment to seven promoter-group individuals at ₹60 each.
Why this matters
The quarterly swing is striking, but the annual view tells the story of a company where revenue growth is being consumed by higher depreciation from new plants. The promoter capital raise is small, just 5.1% of market cap, but it arrives alongside a debt-funded capex cycle that exceeded ₹230 cr in the year. Promoter commitment is one read; the balance-sheet strain is another.
What we're watching
- Debt levels and capex plans for FY25 after the ₹230+ cr spend in FY24.
- Whether Q4's profit rebound is sustained in the June quarter.
- Impact of the 16.45 lakh share dilution on non-promoter earnings per share.
The full read
Vaswani Industries' full-year accounts are a tale of two lines. Revenue grew a healthy 13.5% to ₹467.37 crore. But net profit for the year slumped to ₹4.24 crore from ₹8.60 crore. The culprit is higher depreciation from new plants. The fourth quarter offered a sharp contrast, with a profit of ₹5.39 crore after a ₹7.96 crore loss in Q3. Separately, the board approved a preferential allotment of 16.45 lakh shares at ₹60 each to seven promoter-group individuals, raising ₹9.87 crore. That's just 5.1% of market cap, but it lands as the company funds a capex cycle that already pushed total capital expenditure past ₹230 crore in the year, a spend financed in part by a sharp increase in borrowings. The promoter raise is small, but the timing is not subtle.
Questions answered
- Why did full-year profit fall even as revenue rose?
- Revenue grew 13.5% to ₹467.37 crore, but higher depreciation from new plants and possibly other costs eroded profitability. Full-year net profit dropped to ₹4.24 crore from ₹8.60 crore.
- How significant is the preferential issue to promoters?
- The board approved a ₹9.87 crore allotment of 16.45 lakh shares at ₹60 each to seven promoter-group people. It represents just 5.1% of market capitalization but signals promoter support for the company's capex plans.
- What funded the company's heavy capital expenditure?
- Capex exceeded ₹230 crore in the year. The filing states it was partly financed by a sharp increase in borrowings, alongside this new promoter equity infusion.
- Is the Q4 profit a one-off or a trend reversal?
- It's too early to call. The March quarter swung to a ₹5.39 crore profit from a ₹7.96 crore loss in Q3, but the full-year result was weaker, suggesting the Q4 gain may be seasonal or cyclical.
Story so far
All notes on VASWANI →- 31 May 2026 · 1:25 AM IST Vaswani swings to Q4 profit, but full-year earnings halve on higher depreciation
- 8d ago Vaswani Industries plans a fresh preferential share issue