VIP Industries Delivers Another Weak Quarter But Recovery In Sight: IDBI Capital

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IDBI Capital Report

Although VIP Industries Ltd. reported weaker than expected profitability for Q3 FY21, its cash flows improved meaningfully in the quarter.

The company’s net sales fell 46% YoY to Rs 2,326 million; Ebitda fell 88.0% YoY at Rs 80 million.

The company has reduced its employee cost by 46% YoY to Rs 310 million. However, it reported net loss of Rs 70 million.

On a positive note, the company is witnessing demand improvement on month-on-month bassis.

The company remains hopeful of sales recovery in Q1 FY22 (seasonally strong quarter), although it believes full normalcy is likely to be restored only from FY23.

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