VIP Industries Q4 Review - Market Share Loss Remains A Concern: IDBI Capital

A traveler walks with luggage inside the international terminal.  (Photographer: David Paul Morris/Bloomberg)

VIP Industries Q4 Review - Market Share Loss Remains A Concern: IDBI Capital


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IDBI Capital Report

VIP Industries Ltd.’s Q4 FY21 net sales was in line with our forecast; however, its profitability was weaker than our forecast.

Its net sales fell 22% YoY at Rs 2,430 - the fall in net sales is higher than fall in net sales for Safari Industries Ltd. (down 7% YoY to Rs 1,329 million).

It is concerning that the company continued to lose market share; it aims to recover it when things normalize.

The company’s Ebitda fell 90% YoY at Rs 32 million and it reported net loss of Rs 38 million in Q4 FY21.

We have cut our FY23 sales/Ebitda estimate by 32%/53% as we anticipate the second wave of Covid-19 to affect H1 FY22 sales severely.

Click on the attachment to read the full report:

IDBI Capital VIP Industries Q4FY21 Result Update.pdf


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