Capitaline

Results 28-Jul-22

Analysis

V I P Industries

Strong revival

V I P Industries consolidated net sales increased 186.41% to Rs 590.61 crore in Q1FY23 compared to Q1FY22. Operating profit margin has jumped from 6.27% to 17.37%, leading to 694.20% rise in operating profit to Rs 102.61 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 36.56% to 36.42%. Purchase of finished goods cost fell from 12.42% to 11.88%. Employee cost decreased from 18.89% to 10.55%. Other expenses fell from 25.86% to 23.17%.

The company has witnessed a strong revival after two years of disruptions caused by the Covid19 pandemic,as the impact of the pandemic subsides and the company does not anticipate any significant impact of the pandemic on its financial results and its liquidity. The financial results for the comparative quarters ended June 30, 2021 and March 31, 2022 were impacted due to the lockdowns and disruptions caused by the COVID-19 pandemic during the previous fiscal year.

Other income fell 50.84% to Rs 7.05 crore. PBIDT rose 302.27% to Rs 109.66 crore. Provision for interest fell 11.02% to Rs 6.54 crore.

PBDT rose 417.93% to Rs 103.12 crore. Provision for depreciation fell 0.22% to Rs 18.02 crore.

Profit before EO was Rs 85.10 crore compared to Rs 1.85 crore. The company reported EO income of Rs 15 crore compared to nil EO items during the quarter. PBT after EO was Rs 100.1 crore. EO item relates to a partial receipt of the insurance claim from the Insurance company against the claim lodged with reference to a loss of property, plant and equipment and inventories that were destroyed due to a fire at the company’s regional warehouse at Ghaziabad on April 03, 2019. The company expects to receive the balance claim in the near future.

Provision for tax was debit of Rs 31 crore, compared to credit of Rs 0.68 crore. Effective tax rate was 30.97% compared to negative 36.76%.

Minority interest was nil in both the periods. Net profit attributable to owners of the company increased 2,631.23% to Rs 69.10 crore.

Promoters’ stake was 50.79% as of 30 June 2022 ,compared to 53.46% as of 30 June 2021.

Full year results analysis

Net sales of V I P Industries have increased 108.47% to Rs 1289.51 crore. Operating profit margin (OPM) has turned from negative 10.55% to positive 11.20%, Operating profit for the quarter stood at Rs 144.40 crore compared to loss of Rs 65.27 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 35.81% to 39.79%. Purchase of finished goods cost rose from 9.91% to 14.99%. Employee cost decreased from 29.59% to 13.24%. Other expenses fell from 38.72% to 21.85%.

Other income fell 24.80% to Rs 36.36 crore. PBIDT stood at Rs 180.76 crore compared to loss of Rs 16.92 crore. Provision for interest fell 17.18% to Rs 24.64 crore. Loan funds declined from Rs 353.44 crore as of 31 March 2021 to Rs 298.18 crore as of 31 March 2022. Inventories rose to Rs 518.38 crore as of 31 March 2022 from Rs 301.65 crore as of 31 March 2021. Sundry debtors were higher at Rs 218.51 crore as of 31 March 2022 compared to Rs 148.47 crore as of 31 March 2021. Cash and bank balance declined from Rs 90.50 crore as of 31 March 2021 to Rs 20.73 crore as of 31 March 2022. Investments declined from Rs 140.98 crore as of 31 March 2021 to Rs 41.71 crore as of 31 March 2022.

PBDT stood at Rs 156.12 crore compared to loss of Rs 46.67 crore. Provision for depreciation fell 10.24% to Rs 69.96 crore. Fixed assets declined from Rs 287.95 crore as of 31 March 2021 to Rs 270.33 crore as of 31 March 2022. Intangible assets declined from Rs 2.53 crore to Rs 1.94 crore.

Profit before tax reported profit of Rs 86.16 crore compared to loss of Rs 124.61 crore. Provision for tax was debit of Rs 19.23 crore, compared to credit of Rs 27.12 crore. Net profit reported was Rs 66.93 crore compared to loss of Rs 97.49 crore.

Equity capital increased from Rs 28.26 crore as of 31 March 2021 to Rs 28.29 crore as of 31 March 2022. Per share face Value remained same at Rs 2.00.

Promoters’ stake was 50.38% as of 31 March 2022 ,compared to 53.46% as of 31 March 2021 .

Cash flow from operating activities has turned negative Rs 23.68 crore for year ended March 2022 from positive Rs 17.04 crore for year ended March 2021. Cash flow used in acquiring fixed assets during the year ended March 2022 stood at Rs 36.46 crore compared to Rs 9.12 crore during the year ended March 2021.

The scrip is currently trading at Rs 648

VIP Industries: Consolidated Results
	2206 (03)	2106 (03)	Var.(%)	2203 (12)	2103 (12)	Var.(%)
Total Operating Income	590.61	206.21	186	1289.51	618.56	108
OPM(%)	17.4%	6.3%		11.2%	-10.6%
OP	102.61	12.92	694	144.40	-65.27	LP
Other Income	7.05	14.34	-51	36.36	48.35	-25
PBIDT	109.66	27.26	302	180.76	-16.92	LP
Interest	6.54	7.35	-11	24.64	29.75	-17
PBDT	103.12	19.91	418	156.12	-46.67	LP
Depreciation	18.02	18.06	0	69.96	77.94	-10
PBT Before EO	85.10	1.85	999	86.16	-124.61	LP
EO	15.00	0.00		0.00	0.00
PBT after EO	100.10	1.85	999	86.16	-124.61	LP
Tax provision	31.00	-0.68	PL	19.23	-27.12	PL
PAT	69.10	2.53	999	66.93	-97.49	LP
EO (net of tax)	0.00	0.00		0.00	0.00
PAT after EO	69.10	2.53	999	66.93	-97.49	LP
Minority Interest	0.00	0.00		0.00	0.00
PAT after MI	69.10	2.53	999	66.93	-97.49	LP
EPS*	#	#		4.7	-6.9
* Annualized On Current Equity Of Rs 28.26 Crore of face value of Rs 2 each
EO: Extraordinary Items, PL: Profit to Loss
EPS Is Calculated After Excluding EO And Relevant Tax
# EPS not annualised due to seasonality of business
Figures In Rs Crore
Source: Capitaline Database

Previous News

V I P Industries consolidated net profit declines 69.40% in the September 2023 quarter
( Results - Announcements 31-Oct-23 15:54 )

V I P Industries consolidated net profit rises 2631.23% in the June 2022 quarter
( Results - Announcements 28-Jul-22 08:20 )

VIP Industries
( Analyst Meet / AGM - Conference Call 28-Jul-22 08:34 )

VIP Industries to conduct AGM
( Corporate News - 09-May-23 18:40 )

V I P Industries
( Results - Analysis 09-May-23 05:33 )

V I P Industries reports consolidated net profit of Rs 2.53 crore in the June 2021 quarter
( Results - Announcements 11-Aug-21 17:28 )

Board of VIP Industries recommends Interim Dividend
( Corporate News - 30-Jan-24 17:07 )

VIP Industries schedules board meeting
( Corporate News - 18-Feb-22 10:24 )

V I P Industries fixes record date for interim dividend
( Market Beat - Reports 12-Feb-20 15:10 )

VIP Inds spurts over 7% in four days
( Hot Pursuit - 16-Jun-22 14:56 )

VIP Industries to hold board meeting
( Corporate News - 31-Jul-20 11:03 )