Thread by @SmartSyncServ

Notes on AR 19-20 of VIP Industries

Before going into the AR, watch this excellent video of Mr. Utpal Sheth on Megatrends & Leadership



VIP Industries

Is it a Gorilla in the Jungle of Monkeys?

A Beneficiary of a Megatrend?

Read on

1/

Key learnings from

•Megatrends & Leadership

•Gorilla Investing

2/

Is VIP Industries a Beneficiary of any Megatrend?

May be Yes

3/

Notes from MDA

•FY20: Industry saw growth across all price points & all product categories

•Growth in FY19> FY20

•E-com had the strongest growth

•A Rising trend: People prefer shopping from home compared to visiting markets.

•COVID-19 will only increase the trend.

4/

Notes from MDA

•“The Impossible Offer” launched in Diwali was well received.

•But COVID-19 impacted sales severely in Q4

•Negative impact of COVID to continue in FY21

•International business declined in FY20 and is less than 5%

5/
Notes from MDA

•Sourcing: China, 3rd parties & owned units in India & Bangladesh

•Co expects to reduce its purchases from China &
increase its production from India & Bangladesh

•It expects sales for FY21 to be 30%-50% of 19-20 sales.

•A&P Exp to be lower in FY21.

6/

Consolidated Financials

•Balance Sheet

•Profit & Loss A/c

•Cash Flow Statement

7/

Some points:

•COVID maybe a short term pain & a blessing in disguise in the long term.

•It will force them to think about scaling up alternate sources of supply.

•Dependency on China was always a risk. Co was slow to act.

•COVID has forced them to speed up.

8/

And remember,

•Unless the whole world comes to an end, we are not going to stop travel.

•And especially in India, we are not going to stop weddings either.

In the pic attached, see how VIP has aged over decades

9/

If you found VIP interesting & curious to know more about the company, check out the last 6 quarters concall details:

smartsyncservices.com/vip-industries/

And do wait for our AR notes of Safari Ind

If you found value in this thread don’t forget to L & RT🙂

End