I was going through the Q4 con call transcript and here are the salient points:
1) JTV has really started to punch holes into VGL's growth story as it has introduced "stretch pay" or an EMI kind of mechanism. VGL did not believe this was sustainable; however, it is now looking to introduce stretch pay itself in the next 4 months to counter competition. However, its clear that sales will stay tepid even in H1 of this year; how customers take to stretch pay on low value items needs to be seen. The promoter, however, is confident that it will not stretch the liquidity position of the company.
(My personal take is that stretch pay might not allow VGL to regain growth or lost volumes as its initial pay point will not be compared to a much lower value for competitors)
2) The next growth point for VGL is entry into other segments like home textiles, beauty products etc. The company expects to continue maintaining the current gross margins for these products as well.
3) Mobile app, stretch pay, other segments should ensure robust growth for H2 FY16.
4) @jainaj - To answer your question, I quote from the concall:
Around 12th of May, Rajya Sabha passed an amendment which is yet to be gazetted that unless you adjust your brought forward losses and depreciation not in accordance with the Companies Act with your current year profits, you cannot declare dividend. Earlier, the provision was that brought forward losses or depreciation whichever is less has to be adjusted. Now the entire losses have to be adjusted. So given that we have brought forward losses of around 250 crore plus, we were not in a position to declare dividend. However, we will undertake a capital restructuring exercise and adjust around 600 crore lying in share premium account, with the brought forward losses with the approval of High Court and once this is done, we intend to pay dividend going forward.
All in all, its a tough phase which the company is going through. Interesting to see how the market takes to stretch pay as well its new product segments.
Disc - Invested