Mumbai, January 28, 2025 – VIP Industries Limited (NSE: VIPIND, BSE: 507880) has announced its Q3 FY25 financial results, reporting a revenue of ₹501.07 crore, while posting a net loss of ₹12.42 crore, impacted by higher operational costs and inventory adjustments.
Key Financial Highlights – Q3 FY25 (Consolidated)
| Metric | Q3 FY25 | Q3 FY24 | YoY Change |
|---|---|---|---|
| Revenue from Operations | ₹501.07 crore | ₹546.42 crore | -8.3% |
| Total Income | ₹503.54 crore | ₹549.08 crore | -8.3% |
| Net Profit (PAT) | ₹(12.42) crore | ₹7.15 crore | Negative |
| Earnings Per Share (EPS) | ₹(0.88) | ₹0.50 | Negative |
- Revenue: ₹1,684.22 crore (-2.6% YoY).
- Net Loss: ₹41.43 crore (vs ₹78.18 crore profit in 9M FY24).
Key Factors Impacting Performance
- Rising Input Costs & Weak Consumer Demand
- Higher raw material costs and increased marketing expenses impacted profitability.
- Inventory levels led to margin pressure, with a 10.3% decline in the gross margin.
- Slow Recovery in International Sales
- Overseas business struggled, leading to lower export revenue.
- Domestic sales remained stable but below pre-pandemic levels.
- Operational & Structural Changes
- VIP Industries completed a stock split, reducing the face value of shares to ₹2.
- The company restructured its Bangladesh manufacturing unit after the previous year’s fire incident, affecting supply chain efficiency.
Management Commentary
Dilip G. Piramal, Chairman VIP Industries, stated:"Despite near-term challenges, we remain optimistic about long-term growth. Our efforts in operational restructuring and cost optimization will help restore profitability in the coming quarters."
Strategic Outlook & Market Positioning
- Optimized cost structures to stabilize margins.
- Expansion in premium luggage and accessories segments to boost revenue.
- Enhancing digital & e-commerce sales channels to drive market recovery.
