Profit before exceptional item and tax stood at Rs 40.79 crore in Q4 FY23, registering the growth of 154% from Rs 16.04 crore posted in corresponding quarter last year.

During the quarter, exceptional items was at Rs 47.21 crore. It includes loss of property, plant and equipment and inventories that were destroyed due to a major fire at a plant of the company's subsidiary (VIP Industries Bangladesh) located in Bangladesh, on 31 January 2023.

EBITDA increased 79% year on year to Rs 69 crore in Q4 FY23. EBITDA margin improved 450 bps at 15.1% in Q4 FY23 from 10.6% in Q4 FY22.

On full year basis, the company's consolidated net profit soared 128% to Rs 152.34 crore in FY23 as compared with Rs 66.93 crore in FY22. Net sales jumped 61.5% year on year to Rs 2,082.32 crore in FY23.

Anindya Dutta, managing director, VIP Industries commented, “The company achieved a growth rate of 61% in FY23 as compared to FY22, backed by strategic investments and expansion executions. We have also enhanced our gross margins despite an increase in value segment salience to 38% from a base of 25%, and sharp input cost inflation witnessed in the first half of the year. The Q4 GM of 58% is reflective of enhanced cost efficiencies across the value chain and strategic shift to in-house manufacturing coupled with softening trend on input costs.

We have deployed approximately Rs 100 crore capex investment in creating technically superior factories both in India and Bangladesh and in line with our growth plans, we will invest Rs 200 crore in FY24 to further expand our manufacturing capacities.

We are on track to achieve approximately 800 exclusive brand outlets (EBOs) by the end of FY24. In FY24, we will also focus on building strong foundations in future growth areas of expansion in international markets and in women's fashion accessories through the brand Caprese.”

Meanwhile, the board has approved the appointment of Neetu Kashiramka as chief financial officer of the company for a period of 5 years with effect from 8 May 2023.

VIP Industries is the leading manufacturer of hard and soft luggage in Asia.