V I P Industries Ltd's Q3FY25 Quarter Results
- 29 Jan 2025
Result Summary
- V I P Industries Ltd reported a 7.9% quarter-on-quarter (QoQ) decrease in its consolidated revenues for the quarter-ended Dec (Q3FY25). On a year-on-year (YoY) basis, it witnessed a decline of 8.3%.
- Its expenses for the quarter were down by 12.7% QoQ and 2.9% YoY.
- The net profit decreased 62.4% QoQ and decreased 273.7% YoY.
- The earnings per share (EPS) of V I P Industries Ltd declined at 0.9 during Q3FY25.
Financial Statments for Q3FY25
| (₹ crores) | Q3FY25 | Q2FY25 | Q3FY24 | QoQ (%) | YoY (%) |
|---|---|---|---|---|---|
Total Income | 503.54 | 546.91 | 549.08 | -7.9% | -8.3% |
Total Expenses | 520.23 | 596.10 | 535.89 | -12.7% | -2.9% |
Profit Before Tax | -16.69 | -45.61 | 13.19 | -63.4% | -226.5% |
Tax | -4.27 | -12.56 | 6.04 | -66.0% | -170.7% |
Profit After Tax | -12.42 | -33.05 | 7.15 | -62.4% | -273.7% |
Earnings Per Share | -0.90 | -2.30 | 0.50 | -60.9% | -280.0% |
Data Source: BSE, Company announcements The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results
Company Overview
V I P Industries Ltd is primarily known as a leader in the luggage industry. The company manufactures and sells a range of travel gear including luggage, backpacks, and accessories. Founded in 1971, V I P Industries has established itself as a prominent player in the industry, largely recognized for its innovative designs and durable products. The company operates across various segments and caters to diverse customer needs through its extensive product lines. While specific recent developments are not included in the provided data, V I P Industries is known for its continuous product innovation and expansion into new markets, which are critical to maintaining its competitive edge in the travel goods industry.
Revenue
In the third quarter of FY25, V I P Industries Ltd reported a total income of ₹503.54 crores. This represents a decrease of 7.9% compared to the previous quarter (Q2FY25) where the total income was ₹546.91 crores. Year-over-year, there is an 8.3% decline in total income from ₹549.08 crores in Q3FY24. This downward trend in revenue might reflect various factors impacting the company's sales performance during this period. With a focus on high-quality luggage and related products, the company’s revenue trends can be influenced by seasonal travel patterns, consumer spending behavior, and broader economic conditions.
Profitability
For Q3FY25, the company recorded a loss before tax of ₹16.69 crores, which is a significant improvement from the loss of ₹45.61 crores in the previous quarter (Q2FY25). However, this marks a notable shift from a profit before tax of ₹13.19 crores in the same quarter of the previous year (Q3FY24). The tax credit for the quarter was ₹4.27 crores, compared to ₹12.56 crores in the previous quarter and a tax expense of ₹6.04 crores in Q3FY24. Consequently, the profit after tax stood at a loss of ₹12.42 crores for Q3FY25, improving from a loss of ₹33.05 crores in Q2FY25, but contrasting sharply with a profit of ₹7.15 crores in Q3FY24. The earnings per share (EPS) for the quarter was negative at ₹-0.90, reflecting an improvement from the previous quarter's ₹-2.30, but a decline from the positive ₹0.50 EPS in Q3FY24.
Operating Metrics
During the third quarter of FY25, V I P Industries Ltd managed to reduce its total expenses to ₹520.23 crores, marking a 12.7% decrease from the previous quarter’s expenses of ₹596.10 crores. Year-over-year, expenses decreased by 2.9% from ₹535.89 crores in Q3FY24. Despite the decline in total income, the company’s efforts to control costs are evident, resulting in a reduction in total expenses. This cost management strategy is significant for the company's operations amidst declining revenue. Earnings per share (EPS) also reflect operational performance, showing a decrease of 60.9% quarter-over-quarter from Q2FY25 and a decrease of 280.0% year-over-year from Q3FY24. These metrics highlight the company's focus on operational efficiency and financial prudence in a challenging environment.
