VIP Industries Ltd had vaulted 14 per cent to Rs 439 on the BSE in the intra-day trade after the company posted turnaround numbers for the quarter ended June 30, 2021 (Q1FY22). In the morning, trade stock was ruling 13 per cent higher at Rs 436.5 apiece on the BSE against a 0.23 per cent gain in the benchmark S&P BSE Sensex.

VIP Industries, the leading manufacturer of hard and soft luggage in Asia, reported a consolidated net profit of Rs 2.53 crore in Q1FY22 compared with a net loss of Rs 51.32 crore in the year-ago period. Consolidated revenue from operations, meanwhile, surged 411.43 per cent to Rs 206.21 crore as against Rs 40.32 crore in Q1FY21. The profit before tax was Rs 1.85 crore relative to a pre-tax loss of Rs 67.38 crore in Q1FY21.

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“The Q1FY22 revenue sequentially was impacted due to Covid-19. The revenue stood at 85 per cent of last year’s March quarter at Rs 221 crore. Hard Luggage constituted 39 per cent of total revenue for this quarter. Gross Margin was at 54 per cent during the quarter, mainly due to lower discounts and better mix in favour of higher-margin products and price increase,” the company said in a statement.

The overall expense skid 18 per cent as compared to Q4FY21 due to reduction in CSR spends, factory related costs as the plant was shut for some time and elimination of all discretionary spending. Employee cost was almost in line with last year in the same period as well as a sequential quarter.

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