The VIP Industries stock had a stellar run till January but is now down 20 percent from its 52-week high in the last one month. Weakness in the rupee has hit their business as 70 percent of their revenue comes from soft luggage that is imported from China. In an interview to CNBC-TV18, Dilip Piramal, Chairman of VIP Industries spoke about the latest happenings in his company and sector.
The growth in aviation figures for February is 24 percent. Travel is something which affects us directly and aviation gives very accurate figures. So that is a very good barometer for us, he said.
We are doing quite well and demand is good, he added.
Our profitability has been much better, margins have been good, said Piramal.
Speaking of doubling the capacity of Bangladesh unit, he said that the doubling will happen by the end of next month.
Whatever we earn in Bangladesh adds to our bottomline, he further mentioned.
On airline traffic growth, Piramal said, “We are looking at something like 15 percent plus. We are confident of doing 15 percent but it could increase also.”
Post goods and services tax (GST), we have got some good market share from the unorganized sector, he said.
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