Q4FY21 Company Update - VIP Industries - ICICI Direct

Luggage being a proxy play to the travel & tourism industry was among the worst impacted sectors owing to pandemic in FY21. Gradual reopening of economy and higher push towards domestic travel had perked up demand for luggage during January-March 2021. However, re-imposition of lockdown restrictions derailed the revenue recovery. VIP reported revenue growth of ~4% QoQ (down 22% YoY to Rs. 243.0 crore in Q4FY21). Gross margins expanded 530 bps QoQ to 43.8% but still continue to be significantly below pre-Covid levels (52-53%). This is mainly due to sale of lower margin products (value segment), higher discounting to liquidate existing inventory and significant increase in RM prices. However, the company was able to materially reduce operating overheads by 30% (employee & other expenses down 39% & 8% YoY, respectively). This led VIP to report positive EBITDA of Rs. 3.2 crore in Q4FY21. Other income was at Rs. 16.3 crore (vs. Rs. 5.5 crore in Q4FY20), which includes profit on sale of land and building (Rs. 8.9 crore).

For details, click on the link below: Link to the report

Shares of V.I.P.INDUSTRIES LTD. was last trading in BSE at Rs.370.4 as compared to the previous close of Rs. 363.9. The total number of shares traded during the day was 48537 in over 2099 trades.

The stock hit an intraday high of Rs. 373.75 and intraday low of 357.75. The net turnover during the day was Rs. 17703798.

Source : Equity Bulls

Keywords