Capitaline

Results 03-Aug-23

Analysis

V I P Industries

OP down 21%

V I P Industries consolidated net sales increased 7.71% to Rs 636.13 crore in Q1FY24 compared to Q1FY23. Operating profit margin has declined from 17.37% to 12.67%, leading to 21.45% decline in operating profit to Rs 80.60 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 36.42% to 30.24%. Purchase of finished goods cost rose from 11.88% to 21.24%. Employee cost decreased from 10.55% to 10.22%. Other expenses rose from 23.17% to 25.87%.

Other income fell 62.55% to Rs 2.64 crore. PBIDT fell 24.09% to Rs 83.24 crore. Provision for interest rose 64.68% to Rs 10.77 crore.

PBDT fell 29.72% to Rs 72.47 crore. Provision for depreciation rose 15.87% to Rs 20.88 crore.

Profit before EO was down 39.38% to Rs 51.59 crore. The company reported EO income of Rs 25.78 crore compared to EO income of Rs 15 crore. PBT after EO was down 23% to Rs 77.37 crore.

During the current quarter ended June 30,2023, the Insurance company has accorded approval of Rs 40.78 crore as full and final settlement against the claim lodged by the company. Accordingly,during the current quarter ended June 30, 2023, the company has recognised balance income of Rs 25.78 crore (after considering the partial receipt of insurance claim of Rs 15.00 crore recognised during the previous financial year) and the same has been disclosed above as Exceptional Item in the consolidated financial results for the quarter ended June 30, 2023.

Provision for tax was expense of Rs 19.62 crore, compared to Rs 31 crore. Effective tax rate was 25.36% compared to 30.97%.

Minority interest was nil in both the periods. Net profit attributable to owners of the company decreased 16.43% to Rs 57.75 crore.

Promoters’ stake was 51.29% as of 30 June 2023 ,compared to 50.79% as of 30 June 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 590

VIP Industries: Consolidated Results
	2306 (03)	2206 (03)	Var.(%)	2303 (12)	2203 (12)	Var.(%)
Total Operating Income	636.13	590.61	8	2082.32	1289.51	61
OPM(%)	12.7%	17.4%		15.1%	11.2%
OP	80.60	102.61	-21	313.80	144.40	117
Other Income	2.64	7.05	-63	17.08	36.36	-53
PBIDT	83.24	109.66	-24	330.88	180.76	83
Interest	10.77	6.54	65	28.48	24.64	16
PBDT	72.47	103.12	-30	302.40	156.12	94
Depreciation	20.88	18.02	16	73.66	69.96	5
PBT Before EO	51.59	85.10	-39	228.74	86.16	165
EO	25.78	15.00	72	-32.21	0.00
PBT after EO	77.37	100.10	-23	196.53	86.16	128
Tax provision	19.62	31.00	-37	44.19	19.23	130
PAT	57.75	69.10	-16	152.34	66.93	128
EO (net of tax)	0.00	0.00		0.00	0.00
PAT after EO	57.75	69.10	-16	152.34	66.93	128
Minority Interest	0.00	0.00		0.00	0.00
PAT after MI	57.75	69.10	-16	152.34	66.93	128
EPS*	#	#		12.5	4.7
* Annualized On Current Equity Of Rs 28.33 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

VIP Industries managing director Anindya Dutta resigns
( Hot Pursuit - 16-Aug-23 08:48 )

V I P Industries reports consolidated net profit of Rs 18.54 crore in the September 2021 quarter
( Results - Announcements 30-Oct-21 08:06 )

Rajesh Exports Ltd Surges 1.78%
( Hot Pursuit - 20-Jun-23 09:30 )

V I P Industries allots 16,026 equity shares under ESOP
( Corporate News - 01-Dec-21 18:03 )

V I P Industries to allot NCDs aggregating Rs 100 cr
( Corporate News - 30-Jul-20 15:06 )

V I P Industries standalone net profit rises 52.21% in the December 2017 quarter
( Results - Announcements 25-Jan-18 17:16 )

V I P Industries allots 12,707 equity shares under ESARP
( Corporate News - 03-Oct-22 18:36 )

V I P Industries fixes record date for interim dividend
( Market Beat - Reports 14-Feb-17 15:25 )

V I P Industries standalone net profit rises 27.34% in the June 2017 quarter
( Results - Announcements 03-Aug-17 16:28 )

VIP Industries to conduct board meeting
( Corporate News - 17-Jan-23 18:40 )

V I P Industries fixes record date for interim dividend
( Market Beat - Reports 22-Jan-16 18:47 )