VIP Industries Q1 Review - Result Beat; Green Shoots Ahead: IDBI Capital

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

IDBI Capital Report

VIP Industries Ltd. reported better than expected revenue and Ebitda in Q1 FY22.

Revenue increased 411% YoY to Rs 2,062 million but fell 15.1% QoQ (Safari Industries India Ltd. reported only 9% QoQ fall in sales).

Interestingly, its gross margin improved to 60% from 47% in Q4 FY21 as it procured nearly 90% of luggage from its captive Bangladesh plants.

As per VIP Industries' management, the gross margin is sustainable.

Q1 FY22 Ebitda jumped up nearly three times QoQ to Rs 129 million and it reported net profit of Rs 25 million compared to loss of Rs 38 million in Q4 FY21.

We raise our sales/Ebitda/earnings per share estimates by 19-29% for FY22 to factor stronger than expected Q1 FY22 results.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.