Finance Update Uncategorized

VIP Industries net profit falls by 11.4% y-o-y

vip-world-exclusive-bag-store-bapunagar-ahmedabad-bag-dealers-d2p3w.jpgV I P Industries Ltd’s Q3FY19 consolidated net profit declines 11.4% yoy to Rs.24cr

  • Net profit fell by 11.4% to Rs. 23.8 crore from Rs. 26.9 crore.
  • Revenue rose by 27.2% to Rs. 430 crore from Rs. 338 crore.
  • EBITDA dipped by 8.2% to Rs. 37.8 crore from Rs. 41.2 crore.

The company’s consolidated revenue stood at Rs.430cr, up 27.2% yoy and 7.0% qoq.

Consolidated Results Q3FY19: (Rs. in cr)

Q3FY19 YoY (%)
Revenue 430.09 27.2
EBITDA 37.81 [8.2]
EBITDA Margin (%) 8.8 [339]
Net Profit (adjusted) 23.83 [11.4]

***EBITDA margin change is bps

VIP Industries reported a disappointing set of numbers for Q3FY19 on EBITDA and PAT fronts. The consolidated revenue for the quarter, grew by 27.2% yoy and 7% qoq to Rs430cr. EBITDA came in at Rs38cr, down 8.2% yoy and down 26% qoq. EBITDA margin contracted by 339bps yoy and 392bps qoq to 8.8%. Consolidated PAT for the quarter declined by 11.4% yoy and by 27.4% qoq to Rs24cr.

  • Gross margins declined by 430bps yoy and 305bps qoq to 46.7%. The average polymer prices during the quarter have been declining, which is likely to have impacted the margins.
  • On yoy basis, other expenses declined by 143bps yoy but the same was higher by 66bps qoq. Employee cost was higher by 51bps yoy and 21bps qoq.
  • Depreciation expense increased by 30.2% yoy and 13.1% qoq to Rs.4cr. Interest expense increased from Rs0.1cr in Q3FY18 to Rs.0.7cr in Q3FY19.
  • Other income increased by 42.7% yoy and 34.3% qoq to Rs.2.7cr.

IIFL Technical View:

V I P Industries Ltd is currently trading at Rs.492.50, down by 22.25 points or 4.32% from its previous closing of Rs.514.75 on the BSE.
The scrip opened at Rs.512.05 and has touched a high and low of Rs.514 and Rs.479.35 respectively. So far 6,30,226 (NSE+BSE) shares were traded on the counter. The stock is currently trading above its 50 DMA.

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