VIP Industries, incorporated in the year 1968, is a mid cap company with a market cap of Rs 5808.14 crore, operating in plastics sector.
VIP Industries Ltd’s key products/revenue segments include soft luggage, scrap and export incentives for the year ending 31-Mar-2020.
Investment rationale
The company has been able to materially reduce operating overheads by 50 per cent (employee and other expenses down 46 per cent and 52 per cent YoY, respectively). This led VIP to report positive EBITDA of Rs 8.1 crore in Q3FY21 vs. EBITDA loss of Rs 22.1 crore in Q2FY21. Also, the company is net cash positive with cash and debt worth Rs 219 crore and Rs 148 crore, respectively. VIP is planning to be debt free by end of Q2FY22
Financials
For the quarter ended 31-12-2020, the company has reported a consolidated total income of Rs 242.82 crore, up 125.21 per cent from last quarter total income of Rs 107.82 crore and down 44.07 per cent from last year same quarter’s total income of Rs 434.12 crore. Company has reported net profit after tax of Rs -7 crore in latest quarter.
Promoter/FII Holdings
Promoters held 53.46 per cent stake in the company as of Dec 31, 2020, while FIIs held 3.04 per cent, DIIs 14.72 per cent and public and others 28.78 per cent.
