Dear Shareholders,
FY 2024 25: CONSISTENT GROWTH IN A VOLATILE ENVIRONMENT
FY_? saw continued macro volatility across our key markets. The past
year saw inflationary pressures, mixed consumer sentiment, and geopolitical shifts. While
the US market remained relatively stable, the UK continued to face headwinds. Germany,
however, delivered a notable milestone by achieving EBITDA breakeven for the second half
of the year. Against this backdrop, we stayed focussed on execution, operational
efficiency, and prudent cost management. As a result, we recorded >>% revenue growth
year-over-year and a _>% increase in profit after tax. Our unique business model and
disciplined approach enabled us to deliver consistent performance despite external
volatilities.
PERFORMANCE GAINS ENHANCED BY DIGITAL AND SUSTAINED INVESTMENTS
We made strong progress across both financial and operational metrics.
Our performance this year reflects our ability to execute well in the face of external
challenges. The US market remained steady, while the UK continued to face macro pressures.
Germany turned EBITDA breakeven, marking a key milestone in our efforts to scale that
market sustainably. We expect Germany to contribute positively to full-year EBITDA from
FY__. Ideal World, acquired during FY_ , achieved EBITDA profitability in the second half
of FY_?. We expect Ideal World to contribute meaningfully to the Group's
profitability from FY__ onwards.
AI is rapidly transforming areas like content creation, video and image
production, ad setup, merchandising, and analytics. Hence, we continue to invest in
technologies to improve customer experience, our own efficiency, and growth. We have made
progress in embedding technology across functions. Our backend infrastructure was upgraded
with cloud-native architecture, API integrations, and new CRM systems for improved
reliability and scalability. On the digital side, we enhanced user experience across
mobile apps, marketplaces, and smart TV platforms. AI is now integrated into multiple
domains. This includes automated content generation for product descriptions and
creatives, and scheduling optimisation for TV (currently in Beta stage). We are also using
AI for demand forecasting, reordering, and customer support via AI-powered chatbots. We
also rolled out a Voice of Customer' platform to track real-time feedback across digital touchpoints.
These initiatives are helping improve efficiency, customer engagement, and further
strengthen our digital businesses.
OUR UNIQUE BUSINESS MODEL
Our unique business model comprising of proprietary TV networks,
digital platforms, in-house manufacturing, and a global sourcing base remains a
core strength. This integrated setup allows us to manage cost, quality, and
speed-to-market effectively.
We manage over _ , SKUs and continue to offer a diverse product mix.
Our vertically integrated operations enable agility in response to changing consumer
preferences and provide operating leverage as we scale. The asset-light nature of our
model keeps capex requirements low, enabling strong free cash flow generation to fund
growth and generate healthier returns for our shareholders.
OUR ESG COMMITMENT
At VGL, we remain committed to responsible and sustainable business
practices. During FY_?, we expanded our solar capacity by ? kW, taking the total
capacity to _.__ MW across operations. We have planted over __, saplings across _ Miyawaki
forests, along with _,? saplings in Government schools and industrial zones. On water
conservation, we harvest > , kilolitres of rainwater annually, recycle ._ kilolitres
daily, and also have _ rainwater storage tanks of >,> KL capacity. Our Indian and US
facilities are LEED Platinum and Gold certified, with our SEZ unit recognised as a Net
Zero Energy Building. We compost all biodegradable waste and recycle plastic and
electronic waste through Government-approved recyclers. VGL has received a
Combined ESG Rating __
(Strong)' from ICRA ESG Rating Limited. This reflects strong environmental,
social and governance performance. We remain on track to become a net carbon zero Company
(in Scope > and _) by FY_>. Through our flagship mid-day meal initiative, your
purchase feeds
', we have served over > million meals to underprivileged children
across India, the US, the UK, and Germany. Currently, we serve ?_, meals per school day,
aiming for one million meals per school day by FY .
LOOKING AHEAD WITH CONFIDENCE
As we enter FY__, our priorities are to further scale the digital
businesses, sustaining profitability in newer markets, and leveraging operating
efficiencies. With Germany achieving EBITDA breakeven, we expect it to contribute towards
Group's profitability from FY__ onwards. Our balance sheet remains healthy, with a net
cash position of >_ crore with consistent free cash flow generation. We remain
focussed on meeting customer needs, disciplined execution, technology-led operations, and
long-term value creation for all stakeholders. Thank you for your continued trust and
support.
Warm Regards, |
HARSH BAHADUR |
Chairman |