V I P Industries Ltd's Q2FY19 consolidated net profit rises 37.7% yoy to Rs33cr

The company’s consolidated revenue stood at Rs402cr, up 29.9% yoy but down 22.4% qoq.

Nov 14, 2018 02:11 IST India Infoline Research Team

V I P Industries Ltd Q2FY19

Consolidated Results Q2FY19: (Rs. in cr)

Q2FY19 YoY (%)
Revenue 401.78 29.9
EBITDA 51.07 39.6
EBITDA Margin (%) 12.7 88
Net Profit (adjusted) 32.81 37.7
***EBITDA margin change is bps
VIP Industries reported a good set of numbers for Q2FY19. The consolidated revenue for the quarter grew by 29.9% yoy but down 22.4% to Rs402cr. EBITDA came in at Rs51cr, up 39.6% yoy but down 46.9% qoq. EBITDA margin expanded by 88bps yoy but contracted by 587bps qoq to 12.7%.  Consolidated PAT for the quarter grew by 37.7% yoy to Rs33cr. 
  • Revenue growth is likely to have been aided by stronger volumes. The domestic air traffic remained strong during Q2FY19 (consecutive months of ~20% yoy growth) which leads to higher demand for luggage.
  • EBITDA margin contraction on qoq basis was on account of lower revenues and potential impact of forex movement.
  • Gross margins expanded by 149bps yoy aiding overall EBITDA margin expansion. Gross margin contraction on qoq basis was 63bps.
  • Employee costs declined by 65bps yoy but up 380bps qoq, while other expenses was up 126bps yoy and 143bps qoq as a percentage of sales.
  • Depreciation expense increased by 31% yoy to Rs3.9cr, while other income declined by 26.4% yoy to Rs2cr.

Technical View:

V I P Industries Ltd ended at Rs. 445.20, up by 18.8 points or 4.41% from its previous closing of Rs. 426.40 on the BSE.
The scrip opened at Rs. 425 and touched a high and low of Rs. 451.30 and Rs. 425 respectively. A total of 4,46,409 (NSE+BSE) shares were traded on the counter. The stock traded above its 100 DMA.

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