Luggage maker VIP Industries Ltd on Monday reported a consolidated net loss of 4.26 crore for the fourth quarter ended March 2023, impacted by an exceptional loss.
The company had posted a net profit of Rs 12.39 crore in the January-March quarter a year ago, VIP Industries Ltd (VIL) said in a BSE filing.
However, its revenue from operations increased 26.6 per cent to Rs 450.57 crore during the quarter under review against Rs 355.90 crore in the year-ago period.
During the quarter, VIL reported a loss of Rs 47.21 as an exception item. This was related to a loss of property, plant and equipment and inventories that were destroyed due to a major fire at a plant of the company's subsidiary in Bangladesh on January 31, 2023.
VIL's profit before exceptional items stood at Rs 40.79 crore.
This is "reflective of enhanced cost efficiencies across the value chain and strategic shift to in-house manufacturing coupled with softening trend on input costs," said VIL Managing Director Anindya Dutta.
In Q4 FY23, the total expenses of VIL rose 19.85 per cent to Rs 414.32 crore.
Its total income in the March quarter was Rs 455.11 crore.
For the financial year ended March 31, 2023, VIL's consolidated net profit stood at Rs 152.34 crore and its revenue from operations was 2,082.32 crore.
"The company achieved a growth rate of 61 per cent in FY23 as compared to FY22, backed by strategic investments and expansion executions. We have also enhanced our gross margins despite an increase in value segment salience to 38 per cent from a base of 25 per cent, and sharp input cost inflation witnessed in the first half of the year," he said.
The company has deployed approx Rs 100 crore capex investment at its factories in India and Bangladesh, and in line with growth plans, it will invest Rs 200 crore in FY24 to further expand manufacturing capacities, he added.
"The ramp-up of our retail footprint has started to yield very good results, we are on track to achieve approximately 800 exclusive brand outlets (EBOs) by the end of FY24. Moving forward, our focus will be on expanding our store presence in tier-II cities and beyond," Dutta said.
As part of its growth strategy, VIL aims to be present in every town with a population of over 50,000 by the middle of the next financial year, he added.
"In FY24, we will also focus on building strong foundations in future growth areas of expansion in international markets and in womens fashion accessories through the brand Caprese," Dutta said, adding "With our diversified product portfolio, we aim to establish each of our brands as a leader in their respective categories given their unique propositions.
Shares of VIP Industries on Monday settled at Rs 621.25 apiece on BSE, 0.12 per cent higher than its previous close.
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