VIP Industries Q2: Revenue increases by 6.09%, while net profit declines by 69% to Rs 13.28 crore

 VIP Industries Q2: Revenue increases by 6.09%, while net profit declines by 69% to Rs 13.28 crore

The company's overall sales increased 6.09 percent to Rs 546.09 crore.

VIP Industries Ltd. recorded a consolidated net profit of Rs 13.28 crore in order to September quarter of FY24 on October 31. This is a 69% decrease from the previous financial year's identical period's Rs 43.40 crore.

According to a regulatory filing, the company's total sales increased to Rs 546.09 crore from Rs 514.74 crore in the same quarter last year, a 6.09 percent increase.

For the quarter, EBIDTA (consolidated earnings before interest, tax, amortization, in order and amortization) was Rs 55 crore, a decrease of 28%. The EBIDTA margin is 10.1%, down from 14.8% during the same time last year.

According to the company's investment presentation, the total growth of its trade channels—both offline and online—is at 13%. The growth rate of e-commerce is still above 50% year over year.

After being negatively affected in Q1 by delayed production at the company's Bangladeshi factory, gross margins increased to 55.5 percent. According to the company's investor presentation, 4.2 percent of the 4.5 percent marketing and DCA difference may be attributed to e-commerce.

Following the results, shares of VIP Industries were trading at Rs 609 over the NSE at 2:49 p.m., down 0.78 percent.