VIP Industries Q4FY22 PAT turns around to profit of Rs12.39 crore on inventory efficiency gains

18 May 2022 , 12:44 AM

VIP Industries Ltd reported 46.46% growth in sales revenues yoy for the Q4FY22 quarter on consolidated basis at Rs355.90 crore. On a sequential basis, revenues were lower for the quarter by -10.53%.

For full year FY22, the revenues were higher by 84% at Rs1,290 crore. For Q4FY22, the turnaround from a loss to profit happened on account of inventory efficiency gains.

This more than offset the sharp doubling of input costs. VIP also saw frequent disruption of operations on account of Micron related shutdowns across India.

The consolidated net profit for Q4FY22 turned around from a net loss to profit although the profits were sharply lower on sequential basis.

For Q4FY22, The turnaround was all about smart inventory efficiency gains which compensated for the doubling of input costs during the quarter.

NPM was at 3.42% in the latest quarter, but was lower than the sequential quarter. Net cash flows from operations in the cash flow account dipped from a positive figure to a negative figure on account of sharp spike in inventories and trade receivables.

Financial highlights for Mar-22 compared yoy and sequentially

	VIP Industries
Rs in Crore	Mar-22	Mar-21	YOY	Dec-21	QOQ
Total Income (Rs cr)	₹ 355.90	₹ 243.00	46.46%	₹ 397.34	-10.43%
Net Profit (Rs cr)	₹ 12.39	₹ -3.78	N.A.	₹ 33.47	-62.98%
Diluted EPS (Rs)	₹ 0.87	₹ -0.27		₹ 2.35
Net Margins	3.48%	-1.56%		8.42%