Net sales of V.I.P. Industries for the first quarter ended June 30th 2010 were Rs. 235.4 Cr, a growth of 17% over the first quarter last year. The EBITDA was 46.2 Cr (19.6% of Sales), Profit Before Tax (PBT) was Rs. 41.2 Cr, with Taxation of Rs. 9 Cr, resulting in Profit After Tax (PAT) of Rs. 32.2 Cr, as against Rs. 20.1 Cr in the same quarter last year, a growth of 60%. The EPS amounted to Rs. 11.4 on an absolute (not annualized) basis.
The Company’s strong results were driven by robust growth in sales volumes and values, despite a poor marriage season in April. “VIP’s strong sales were led by the tremendous success of new product launches such as the world’s lightest fully featured loaded cabin strolly, Superlite”, says Ms. Radhika Piramal, MD, VIP Industries Ltd. “Furthermore, we were able to improve our operating margins by 260 basis points as compared to the corresponding quarter of the previous year despite increased input costs as the strength of our brand enabled us to pass on some of these costs through price rises in May and June without affecting our sales volumes.”
The highlight of the quarter was a strong cash flow which enabled the company to reduce its total debt by 47 Cr, resulting in a debt: equity ratio of 0.2. “The company reduced its debt from 136 Cr to 87 Cr in the financial year 09-10, which has now come down to Rs. 40 Cr”, commented Mr. Dilip Piramal, Chairman VIP Industries Ltd. “We have robust growth plans through our multi-brand, multi-channel strategy and look forward to continued and sustainable growth.”