VIP Industries shares in focus on positive sales growth after seven quarters but losses remain

VIP Industries shares in focus on positive sales growth after seven quarters but losses remain


Shares of VIP Industries are in focus on Thursday, August 13, as the stock will be reacting to the company reporting positive sales growth after seven quarters. However, the company’s losses continued on both the Profit After Tax (PAT) and the Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) front.

VIP Industries said that going ahead, it is aiming for faster growth, adding that the first phase of its business transformation is largely completed.

For the June quarter, VIP Industries’ revenue increased by 3% to ₹578.36 crore in the June quarter from ₹561.43 crore in the previous fiscal. The company said over 80 new product launches drove 50% of its revenue.

It reported an earnings before interest taxes depreciation and amoritsation (EBITDA) loss came of ₹11.12 crore compared to a positive of ₹24.65 crore in the June quarter last year.

Net loss for the company increased to ₹53.56 crore from ₹13.1 crore in the year-ago period. The company said its profitability was impacted by inflation in raw materials resulting from crude price hike.

Its managing director and CEO Atul Jain said over the past few months, the company has focused on strengthening each of its brands — VIP, Skybags, Aristocrat, Alfa and Caprese.

“We optimised inventory across the company and channel network, reset brand and pricing guardrails, onboarded a strong leadership team, and re-energized our channel ecosystem. With the problems of the past largely behind us, VIP is building momentum for its next phase of growth,” Jain added.Shares of VIP Industries ended the previous session 1.9% lower at ₹311 apiece. The stock has risen 3.6% in the past month but is down 18.8% this year, so far.

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