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