Revenue from operations during the quarter under review increased 27% at Rs 5.18 billion against Rs 4.07 billion in the corresponding quarter of previous fiscal. EBITDA (earnings before interest, tax, depreciation and amortization) margin improved around 350 bps at 18.58% from 15.07%.
VIP Industries in annual report said that though there was a bit of uncertainty due to GST during last year, the government has heeded the concerns of the industry and settled the GST rate at 18%. It will benefit entire luggage and bags industry and consumers.
“VIP is likely to record strong volume growth in the luggage space, and growth in brands like VIP would help safeguard gross margins to a certain extent. Besides, we feel the current scale of business would protect profitability during volatile times,” analysts at Equirus said in recent report.
Ace investor Rakesh Jhunjhunwala holds 5.21 million equity shares or 3.69% stake in VIP Industries as of June 30, 2018, the shareholding pattern data shows. These shares valued at Rs 2.78 billion based on current market price.
At 02:07 PM; VIP Industries was trading 9% higher at Rs 535 on the BSE, as compared to nearly 1% rise in the S&P BSE Sensex. The trading volumes on the counter jumped five-fold with a combined 5.49 million equity shares changed hands on the BSE and NSE so far.