VIP Industries jumps after strong Q4 results

VIP Industries jumped 5.03% to Rs 111.70 at 10:54 IST on BSE after consolidated net profit surged 217.2% to Rs 20.30 crore on 21.5% increase in net sales to Rs 226.60 crore in Q4 March 2014 over Q4 March 2013.

The result was announced after trading hours on Tuesday, 20 May 2014.

Meanwhile, the BSE Sensex was down 30.69 points, or 0.13%, to 24,346.19.

On BSE, so far 8.30 lakh shares were traded in the counter, compared with an average volume of 6.66 lakh shares in the past one quarter.

The stock hit a high of Rs 115.10 so far during the day, which is also a 52-wek high for the counter. The stock hit a low of Rs 109 so far during the day. The stock hit a 52-week low of Rs 38.85 on 6 August 2013.

The stock had underperformed the market over the past one month till 20 May 2014, rising 2.80% compared with 7.72% rise in the Sensex. The scrip had, however, outperformed the market in past one quarter, rising 66.95% as against Sensex's 18.70% rise.

The small-cap company has an equity capital of Rs 28.26 crore. Face value per share is Rs 2.

VIP Industries reported an exceptional income of Rs 15.90 crore in Q4 March 2014 on profit realized from sale of its old investment in securities and its property at Bhandup, Mumbai.

On a consolidated basis, the company's net profit rose 83.2% to Rs 57.70 crore on 16.1% increase in net sales to Rs 968.40 crore in the year ended March 2014 over the year ended March 2013.

Generally, the luggage business is seasonal in nature and accordingly, financial results for the quarter are not representative of the whole year, the company said in a statement.

VIP Industries Bangladesh, the wholly-owned subsidiary of the company, commenced commercial production at its plant at Mongla Export Processing Zone in Bangladesh in Q4 March 2014.

VIP Industries is Asia's No. 1 luggage manufacturer. Its four factories produce nearly five million pieces a year, making it the second largest producer of luggage in the world. VIP Industries already has a global footprint with its products available not just across India but also all over Middle East, the UK, USA, Germany, Spain, Italy and select African and South East Asian countries.

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