Capitaline

Results 09-May-23

Analysis

V I P Industries

Net loss due to fire in Bangladesh plant

V I P Industries consolidated net sales increased 26.60% to Rs 450.57 crore in Q3FY23 compared to Q3FY22. Operating profit margin has jumped from 9.15% to 14.27%, leading to 97.30% rise in operating profit to Rs 64.28 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 42.96% to 35.97%. Purchase of finished goods cost fell from 18.04% to 17.85%. Employee cost decreased from 11.45% to 10.30%. Other expenses rose from 20.85% to 24.50%.

Other income fell 22.13% to Rs 4.54 crore. PBIDT rose 79.17% to Rs 68.82 crore. Provision for interest rose 56.61% to Rs 8.41 crore.

PBDT rose 82.84% to Rs 60.41 crore. Provision for depreciation rose 15.41% to Rs 19.62 crore.

Profit before EO grew 154.30% to Rs 40.79 crore. The company reported EO expense of Rs 47.21 crore relating to a 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 Private Limited) located in Bangladesh, on January 31st, 2023 compared to nil in the corresponding previous year period. PBT after EO was loss of Rs 6.42 crore compared to profit of Rs 16.04 crore.

Provision for tax was credit of Rs 2.16 crore, compared to debit of Rs 3.65 crore. Minority interest was nil in both the periods. Net profit reported loss of Rs 4.26 crore compared to profit of Rs 12.39 crore.

Equity capital increased from Rs 28.29 crore as of 31 March 2022 to Rs 28.33 crore as of 31 March 2023. Per share face Value remained same at Rs 2.00.

Promoters’ stake was 51.30% as of 31 March 2023 ,compared to 50.38% as of 31 March 2022 .

Full year results analysis

Net sales of V I P Industries have increased 61.48% to Rs 2082.32 crore. Operating profit margin has jumped from 11.20% to 15.07%, leading to 117.31% rise in operating profit to Rs 313.80 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 39.79% to 35.42%. Purchase of finished goods cost fell from 14.99% to 14.77%. Employee cost decreased from 13.24% to 11.03%. Other expenses rose from 21.85% to 24.07%.

Other income fell 53.03% to Rs 17.08 crore. PBIDT rose 83.05% to Rs 330.88 crore. Provision for interest rose 15.58% to Rs 28.48 crore. Loan funds rose to Rs 352.26 crore as of 31 March 2023 from Rs 298.18 crore as of 31 March 2022. Inventories rose to Rs 587.11 crore as of 31 March 2023 from Rs 518.38 crore as of 31 March 2022. Sundry debtors were higher at Rs 255.37 crore as of 31 March 2023 compared to Rs 218.51 crore as of 31 March 2022. Cash and bank balance rose to Rs 36.49 crore as of 31 March 2023 from Rs 20.73 crore as of 31 March 2022. Investments declined from Rs 41.71 crore as of 31 March 2022 to Rs 23.47 crore as of 31 March 2023.

PBDT rose 93.70% to Rs 302.4 crore. Provision for depreciation rose 5.29% to Rs 73.66 crore. Fixed assets increased to Rs 322.39 crore as of 31 March 2023 from Rs 270.33 crore as of 31 March 2022. Intangible assets increased from Rs 1.94 crore to Rs 2.10 crore.

Profit before tax grew 165.48% to Rs 228.74 crore. The company reported net EO expense of Rs 32.21 crore relating to a 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 Private Limited) located in Bangladesh, on January 31st, 2023 and income of Rs 15 crore relating 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 regional warehouse at Ghaziabad on April 03, 2019 compared to nil in the corresponding previous year period. PBT after EO was down 128% to Rs 196.53 crore.

Provision for tax was expense of Rs 44.19 crore, compared to Rs 19.23 crore. Effective tax rate was 22.49% compared to 22.32%.

Minority interest was nil in both the periods. Net profit attributable to owners of the company increased 127.61% to Rs 152.34 crore.

Equity capital increased from Rs 28.29 crore as of 31 March 2022 to Rs 28.33 crore as of 31 March 2023. Per share face Value remained same at Rs 2.00.

Promoters’ stake was 51.30% as of 31 March 2023 ,compared to 50.38% as of 31 March 2022 .

Cash flow from operating activities has turned positive Rs 174.89 crore for year ended March 2023 from negative Rs 23.68 crore for year ended March 2022. Cash flow used in acquiring fixed assets during the year ended March 2023 stood at Rs 106.94 crore, compared to Rs 36.46 crore during the year ended March 2022.

.The scrip is currently trading at Rs 621


VIP Industries: Consolidated Results
	2303 (03)	2203 (03)	Var.(%)	2303 (12)	2203 (12)	Var.(%)
Total Operating Income	450.57	355.90	27	2082.32	1289.51	61
OPM(%)	14.3%	9.2%		15.1%	11.2%
OP	64.28	32.58	97	313.80	144.40	117
Other Income	4.54	5.83	-22	17.08	36.36	-53
PBIDT	68.82	38.41	79	330.88	180.76	83
Interest	8.41	5.37	57	28.48	24.64	16
PBDT	60.41	33.04	83	302.40	156.12	94
Depreciation	19.62	17.00	15	73.66	69.96	5
PBT Before EO	40.79	16.04	154	228.74	86.16	165
EO	47.21	0.00		32.21	0.00
PBT after EO	-6.42	16.04	PL	196.53	86.16	128
Tax provision	-2.16	3.65	LP	44.19	19.23	130
PAT	-4.26	12.39	PL	152.34	66.93	128
EO (net of tax)	0.00	0.00		0.00	0.00
PAT after EO	-4.26	12.39	PL	152.34	66.93	128
Minority Interest	0.00	0.00		0.00	0.00
PAT after MI	-4.26	12.39	PL	152.34	66.93	128
EPS*	#	#		12.5	4.7
* 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

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