Re-opening of schools has improved the demand for backpacks, Dilip G Piramal, chairman of India’s largest luggage manufacturer VIP Industries, told CNBC-TV18 on March 29, adding that historically, Q1 has been the strongest quarter for the company.
Piramal further said that blended price hikes in Q4 have been around 5 percent. The company’s market share was at 47 percent and its target was 50 percent.
“Sourcing from China has declined from 60 percent to 10 percent,” Piramal said, adding Bangladesh was expected to give the company 50 percent of its total units.
“Margin has been volatile due to input costs and uncertain factors. We have a target of achieving Rs 2,000 crore revenue in FY23 with margin in mid-teens,” he added.
Watch the full interview here
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The company reported its consolidated quarterly numbers in December 2021. Net Sales were at Rs 397.34 crore in December 2021, up 70.82 percent from Rs 232.61 crore in the year-ago period. The quarterly net profit was at Rs 33.48 crore in December 2021, up 578.29 percent from Rs 7 crore in December 2020.
EBITDA stood at Rs 66.57 crore in December 2021, up 262.78 percent from Rs 18.35 crore in December 2020 and VIP Industries EPS increased to Rs 2.37 in December 2021 from Rs 0.51 in December 2020.