Capitaline

Results 23-Oct-22

Analysis

V I P Industries

On a strong footing

V I P Industries consolidated net increased 55.95% to Rs 514.74 crore in Q2FY23 compared to Q2FY22. Operating profit margin has jumped from 12.66% to 13.91%, leading to 71.28% rise in operating profit to Rs 71.58 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 39.05% to 34.77%. Purchase of finished goods cost rose from 13.29% to 14.36%. Employee cost decreased from 13.58% to 11.88%. Other expenses rose from 21.27% to 24.29%.

Other income fell 21.78% to Rs 5.28 crore. PBIDT rose 58.34% to Rs 76.86 crore. Provision for interest rose 6.46% to Rs 6.92 crore.

PBDT rose 66.37% to Rs 69.94 crore. Provision for depreciation rose 2.80% to Rs 17.97 crore.

Profit before tax grew 111.60% to Rs 51.97 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 8.57 crore, compared to Rs 6.02 crore. Effective tax rate was 16.49% compared to 24.51%.

Minority interest was nil in both the periods. Net profit attributable to owners of the company increased 134.09% to Rs 43.40 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 half year ended September 30, 2021 were impacted due to the lockdowns and disruptions caused by the COVID-19 pandemic during the previous fiscal year.

Equity capital increased from Rs 28.28 crore as of 30 September 2021 to Rs 28.32 crore as of 30 September 2022. Per share face Value remained same at Rs 2.00.

Promoters’ stake was 51.33% as of 30 September 2022 compared to 50.28% as of 30 September 2021 .

For year-to-date (YTD) results analysis

Net sales of V I P Industries have increased 106.12% to Rs 1105.35 crore. Operating profit margin has jumped from 10.21% to 15.76%, leading to 218.27% rise in operating profit to Rs 174.19 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 37.77% to 35.66%. Purchase of finished goods cost fell from 13.27% to 13.02%. Employee cost decreased from 15.63% to 11.16%. Other expenses rose from 23.04% to 23.68%.

Other income fell 41.48% to Rs 12.33 crore. PBIDT rose 146.07% to Rs 186.52 crore. Provision for interest fell 2.82% to Rs 13.46 crore.

PBDT rose 179.35% to Rs 173.06 crore. Provision for depreciation rose 1.27% to Rs 35.99 crore.

Profit before EO grew 419.01% to Rs 137.07 crore. The company reported EO income of Rs 15 crore compared to nil EO items during the quarter. PBT after EO was up 476% to Rs 152.07 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 expense of Rs 39.57 crore, compared to Rs 5.34 crore. Effective tax rate was 26.02% compared to 20.22%.

Minority interest was nil in both the periods. Net profit attributable to owners of the company increased 433.93% to Rs 112.50 crore.

Equity capital increased from Rs 28.28 crore as of 30 September 2021 to Rs 28.32 crore as of 30 September 2022. Per share face Value remained same at Rs 2.00.

Promoters’ stake was 51.33% as of 30 September 2022 ,compared to 50.28% as of 30 September 2021 .

The scrip is currently trading at Rs 708

VIP Industries: Consolidated Results
	2209 (03)	2109 (03)	Var.(%)	2209 (06)	2109 (06)	Var.(%)	2203 (12)	2103 (12)	Var.(%)
Total Operating Income	514.74	330.06	56	1105.35	536.27	106	1289.51	618.56	108
OPM(%)	13.9%	12.7%		15.8%	10.2%		11.2%	-10.6%
OP	71.58	41.79	71	174.19	54.73	218	144.40	-65.27	LP
Other Income	5.28	6.75	-22	12.33	21.07	-41	36.36	48.35	-25
PBIDT	76.86	48.54	58	186.52	75.80	146	180.76	-16.92	LP
Interest	6.92	6.50	6	13.46	13.85	-3	24.64	29.75	-17
PBDT	69.94	42.04	66	173.06	61.95	179	156.12	-46.67	LP
Depreciation	17.97	17.48	3	35.99	35.54	1	69.96	77.94	-10
PBT Before EO	51.97	24.56	112	137.07	26.41	419	86.16	-124.61	LP
EO	0.00	0.00		15.00	0.00		0.00	0.00
PBT after EO	51.97	24.56	112	152.07	26.41	476	86.16	-124.61	LP
Tax provision	8.57	6.02	42	39.57	5.34	641	19.23	-27.12	PL
PAT	43.40	18.54	134	112.50	21.07	434	66.93	-97.49	LP
EO (net of tax)	0.00	0.00		0.00	0.00		0.00	0.00
PAT after EO	43.40	18.54	134	112.50	21.07	434	66.93	-97.49	LP
Minority Interest	0.00	0.00		0.00	0.00		0.00	0.00
PAT after MI	43.40	18.54	134	112.50	21.07	434	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
( Results - Analysis 23-Oct-22 12:27 )

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
( Analyst Meet / AGM - Conference Call 23-Oct-22 12:23 )

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

V I P Industries reports consolidated net profit of Rs 33.47 crore in the December 2021 quarter
( Results - Announcements 02-Feb-22 08:17 )

V I P Industries reports standalone net profit of Rs 27.55 crore in the December 2021 quarter
( Results - Announcements 02-Feb-22 08:18 )

VIP Industries appoints Anindya Dutta as MD
( Corporate News - 05-Jan-21 15:03 )

V.I.P. Industries Q2 PAT more than doubles to Rs 43 crore
( Hot Pursuit - 25-Oct-22 13:31 )

VIP Industries
( Analyst Meet / AGM - Conference Call 18-May-22 05:00 )

V I P Industries
( Results - Analysis 04-Nov-21 09:03 )