Safari Industries India Ltd, a leading luggage manufacturer, has reported robust financial results for the first quarter ended June 30, alongside significant corporate developments.

Financial Performance

The company delivered a strong quarterly performance with consolidated net profit rising to ₹505.00 million, up from ₹444.00 million in the same period last year, marking a 14% increase. Revenue grew significantly to ₹5.30 billion compared to ₹4.50 billion year-over-year, indicating a healthy 17.8% growth.

Safari Industries' operational efficiency also improved, with EBITDA increasing to ₹793.00 million from ₹658.00 million. The EBITDA margin expanded to 15.00% from 14.64% year-over-year, showcasing enhanced operational performance alongside revenue growth.

Board Changes and New Appointment

In a key corporate move, Safari Industries has appointed Ms. Manjaree Chowdhary as an Additional Director in the capacity of Non-Executive, Independent Director. Subject to shareholder approval, Ms. Chowdhary's term will be for five consecutive years, from August 2 to August 1, 2030.

Ms. Chowdhary brings a wealth of experience to the board. A Felix Scholar with a Master's in Law from the University of London, she currently serves as Senior Executive Officer and General Counsel of Maruti Suzuki India Limited. Her 28-year career spans diverse industries including Industrial, Manufacturing, Auto, Healthcare, Power, and Services across South Asia, US, ANZ, and Japan.

This appointment coincides with the completion of Mrs. Vijaya Sampath's tenure as an Independent Director, which concludes on August 4, after a five-year term.

Investment in Wholly Owned Subsidiary

The Board of Directors has approved a significant investment in Safari Manufacturing Limited, a wholly owned subsidiary of the company. Safari Industries will subscribe to up to ₹250.00 million in the share capital of Safari Manufacturing Limited. This investment will be made through 25 million redeemable preference shares with a face value of ₹10 each.

Safari Manufacturing Limited reported a turnover of ₹4.81 billion for the previous fiscal year, highlighting its significant contribution to the group's operations. The investment is expected to fund capital expenditures and support the subsidiary's growth.

Corporate Governance

Following these changes, the company has reconstituted its board committees, including the Audit Committee, Nomination, Remuneration and Compensation Committee, and Corporate Social Responsibility Committee, to incorporate the new director.

Safari Industries continues to demonstrate strong corporate governance practices, with these developments aimed at enhancing its leadership team and supporting its growth strategy.

The company's robust financial performance, strategic investments, and board-level changes indicate Safari Industries' commitment to growth and corporate excellence in the competitive luggage and travel accessories market.

Safari Industries India , a leading luggage manufacturer, has announced its financial results for the fourth quarter of fiscal year 2023, revealing a mixed performance with revenue growth but declining profitability.

Revenue Growth

Safari Industries India reported a significant increase in revenue for Q4 FY2023. The company's revenue rose to ₹4.20 billion, up from ₹3.65 billion in the same quarter of the previous year. This represents a year-over-year growth of approximately 15.07%, indicating strong sales performance despite challenging market conditions.

Profitability Metrics

Despite the revenue growth, the company experienced a decline in profitability metrics:

The EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) decreased to ₹470.00 million from ₹668.00 million in the previous year, marking a significant decline of 29.64%. Consequently, the EBITDA margin contracted to 11.00% from 18.30%, indicating pressure on the company's operational efficiency.

The consolidated net profit also saw a decrease, falling to ₹380.00 million from ₹430.00 million in the corresponding quarter of the previous year, representing an 11.63% decline.

Dividend Declaration

Despite the challenges in profitability, Safari Industries India has declared a dividend of ₹1.50 per share for its shareholders. This decision reflects the company's commitment to returning value to its investors, even in the face of a challenging quarter.

Conclusion

Safari Industries India's Q4 FY2023 results present a mixed picture. While the company has successfully grown its revenue, indicating strong market demand for its products, the decline in profitability metrics suggests potential challenges in managing costs or maintaining pricing power. The management may need to focus on improving operational efficiency and cost management in the coming quarters to boost profitability while maintaining revenue growth.