Capitaline

Results 25-Jan-23

Analysis

V I P Industries

Robust performance

Consolidated net sales of V I P Industries have increased 32.48% to Rs 526.4 crore in Q3FY23 compared to Q3FY22. Operating profit margin has declined from 14.38% to 13.86%, leading to 27.66% rise in operating profit to Rs 72.96 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 38.48% to 34.33%. Purchase of finished goods cost rose from 13.74% to 15.01%. Employee cost decreased from 12.26% to 11.58%. Other expenses rose from 21.47% to 24.87%.

Other income fell 72.55% to Rs 2.58 crore. PBIDT rose 13.51% to Rs 75.54 crore. Provision for interest rose 21.96% to Rs 6.61 crore.

PBDT rose 12.76% to Rs 68.93 crore. Provision for depreciation rose 3.62% to Rs 18.05 crore.

Profit before tax grew 16.40% to Rs 50.88 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 6.78 crore, compared to Rs 10.24 crore. Effective tax rate was 13.33% compared to 23.43%.

Minority interest was nil in both the periods. Net profit attributable to owners of the company increased 31.76% to Rs 44.10 crore.

The company has witnessed a strong revival after two years of disruptions caused by the Covid 19 pandemic and has infact entered a growth trajectory. The financial results for the comparative period i.e. quarter and nine months ended December 31, 2021 were impacted due to the lockdowns and disruptions caused by the COVID-19 pandemic during the previous fiscal year.

Promoters’ stake was 51.32% as of 31 December 2022 ,compared to 50.27% as of 31 December 2021 .

For year-to-date (YTD) results analysis

Net sales (including other operating income) of V I P Industries has increased 74.78% to Rs 1631.75 crore.

Operating profit margin has jumped from 11.98% to 15.15%, leading to 121.02% rise in operating profit to Rs 247.15 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 38.14% to 35.23%. Purchase of finished goods cost rose from 13.41% to 13.67%. Employee cost decreased from 14.17% to 11.30%. Other expenses rose from 22.37% to 24.07%.

Other income fell 51.16% to Rs 14.91 crore. PBIDT rose 84.10% to Rs 262.06 crore. Provision for interest rose 4.15% to Rs 20.07 crore.

PBDT rose 96.61% to Rs 241.99 crore. Provision for depreciation rose 2.04% to Rs 54.04 crore. PBT before EO rose 168% to Rs 187.95 crore. The company reported EO income of Rs 15 crore compared to nil EO items during the period. PBT after EO was up 189% to Rs 202.95 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.

Profit before tax grew 168.04% to Rs 187.95 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 46.35 crore, compared to Rs 15.58 crore. Effective tax rate was 22.84% compared to 22.22%.

Minority interest was nil in both the periods. Net profit attributable to owners of the company increased 187.13% to Rs 156.60 crore.

Promoters’ stake was 51.32% as of 31 December 2022 ,compared to 50.27% as of 31 December 2021.

.The scrip is currently trading at Rs 722

VIP Industries: Consolidated Results
	2212 (03)	2112 (03)	Var.(%)	2212 (09)	2112 (09)	Var.(%)	2203 (12)	2103 (12)	Var.(%)
Total Operating Income	526.40	397.34	32	1631.75	933.61	75	1289.51	618.56	108
OPM(%)	13.9%	14.4%		15.1%	12.0%		11.2%	-10.6%
OP	72.96	57.15	28	247.15	111.82	121	144.40	-65.27	LP
Other Income	2.58	9.40	-73	14.91	30.53	-51	36.36	48.35	-25
PBIDT	75.54	66.55	14	262.06	142.35	84	180.76	-16.92	LP
Interest	6.61	5.42	22	20.07	19.27	4	24.64	29.75	-17
PBDT	68.93	61.13	13	241.99	123.08	97	156.12	-46.67	LP
Depreciation	18.05	17.42	4	54.04	52.96	2	69.96	77.94	-10
PBT Before EO	50.88	43.71	16	187.95	70.12	168	86.16	-124.61	LP
EO	0.00	0.00		15.00	0.00		0.00	0.00
PBT after EO	50.88	43.71	16	202.95	70.12	189	86.16	-124.61	LP
Tax provision	6.78	10.24	-34	46.35	15.58	197	19.23	-27.12	PL
PAT	44.10	33.47	32	156.60	54.54	187	66.93	-97.49	LP
EO (net of tax)	0.00	0.00		0.00	0.00		0.00	0.00
PAT after EO	44.10	33.47	32	156.60	54.54	187	66.93	-97.49	LP
Minority Interest	0.00	0.00		0.00	0.00		0.00	0.00
PAT after MI	44.10	33.47	32	156.60	54.54	187	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

Previous News

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

Volumes soar at Century Textiles & Industries Ltd counter
( Hot Pursuit - 28-Mar-24 14:30 )

Board of V I P Industries appoints CFO
( Corporate News - 14-Feb-24 19:06 )

V I P Industries fixes record date for 2nd interim dividend
( Market Beat - Reports 25-Jan-23 15:53 )

VIP Industries
( Analyst Meet / AGM - Conference Call 26-Jan-23 01:23 )

V I P Industries
( Results - Analysis 25-Jan-23 20:39 )

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

VIP Industries to discuss results
( Corporate News - 21-Oct-21 11:58 )

V I P Industries standalone net profit declines 11.63% in the September 2014 quarter
( Results - Announcements 29-Oct-14 17:23 )

V I P Industries reports consolidated net loss of Rs 4.26 crore in the March 2023 quarter
( Results - Announcements 08-May-23 17:30 )

VIP Industries to hold board meeting
( Corporate News - 18-May-16 09:51 )