VIP Industries Q4 net profit down 62 percent to Rs 10 crore
VIP Industries witnessed a 62 percent drop in its net profit to Rs 10 crore ($1.3 million) for the fourth quarter ended March 2020, as against Rs 36 crore it had reported in the year-ago period.
The company’s revenue from sales was down 28 percent to Rs 311 crore for the quarter under review, as against Rs 435 crore it reported in the corresponding period last year.
VIP’s EBITDA was down 10 percent to Rs 37 crore for the quarter this year, as compared to Rs 42 crore in March 2019.
“The Q4 performance was impacted due to Covid-19 with a loss of revenue of Rs 120 crore and a profit before tax loss of Rs 27 crore. However, gross margin improvement was due to higher procurement from Bangladesh, improvement in hard luggage share and reduction in revenue management (RM) costs,” the company said in an earnings statement.
Currently, VIP owns around 22 percent market share in India with its fashion and accessories brands like Carlton, Skybags, Caprese, Aristocrat, and Alfa.
VIP has over 600 showrooms across the country and also sells through retail chains and e-commerce platforms.
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