VIP Industries Delivers Another Weak Quarter But Recovery In Sight: IDBI Capital
Customers browse luggage at a hypermarket in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

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

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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

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.

Click on the attachment to read the full report:

IDBI Capital VIP Industries Q3FY21 Result Update.pdf

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