Thread by @gvkreddi

#VIP Industries
#Q1FY23: Results, Concall, Investor Ppt, Stock Price

YOY: Net sales:⬆️179%; PAT:⬆️2280%
QoQ: Net sales:⬆️64%; PAT:⬆️813%
EPS: ₹4.88 vs ₹0.18 YoY vs ₹0.88 QoQ
Coming of a low base, still a good qtr
Highest revenue qtr ever
+5% growth over Q1 FY20

(Cont'd)

- New launches: 38 in Luggage & 127 in Backpacks
- Entered 68 new towns; added 21 & signed 23 more stores
- The Wedding Collection (Vaani Kapoor), Change The World (Varun Dhawan) campaigns +ve
- EBITDA: 18.3%; Cost controlled; PBT: ₹100cr
- Hard Luggage: 46% of Revenue

(Cont'd)

- Own & control manufacturing: 79%
- Volume growth: 8% on FY20 base
- Q1 Headwinds: 24% inflation, 90% of loss of biz from Future Group store closure, impacting 15% revenues
- Gross Margin: 49.9% vs 53.3% (Q4FY23) due to 4.9% higher raw material costs, but price⬆️ 2.1%

(Cont'd)

- Covid resulted in higher tailwind in value segment
- unorganized market yielding into organized
- New capacity in hard luggage (polypropylene)
- Exports at 5% of Revenue
- FY23 Capex plan of ~₹50 cr; payback in 18-24 mths
- EBITDA Margin expectation (FY23): 18-20%

(Cont'd)

Management Comments:
- Market share at lower 40's; possibly improving
- Competition intensified
- Industry profitability will stabilize
- Demand to sustain; inflation to taper
- Value segment growing faster
- Acuteness of seasonality over time reduced

(Cont'd)
#FMCG #Investment

Stock Price notes:
Stock down:
: 9.7% since result
: 14.7% from next day (after result) high of ₹685
: 24.6% in FY23 from high of ₹774.6
: CMP: ₹585.6, back at 6th Jul level; negated pre-results gain
: P/BV: 13.4; PE: 62; Mkt Cap: ₹8287cr

The End 🙏

#investing #stocks

Standalone Results:
YOY: Net sales:⬆️179%; PAT:⬆️2280%
QoQ: Net sales:⬆️64%; PAT:⬆️813%
EPS: ₹5.85 vs ₹0.25 YoY vs ₹0.64 QoQ

Consolidated Results:
YOY: Net sales:⬆️186.41%; PAT:⬆️2631.23%
QoQ: Net sales:⬆️65.95%; PAT:⬆️457.71%
EPS: ₹4.88 vs ₹0.18 YoY vs ₹0.88 QoQ