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- 21 Oct 2022
- ICICIdirect Research
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VIP’S REVENUE PERFORMANCE EXCEEDED EXPECTATIONS IN Q2FY23 WITH HIGHEST EVER SALES IN Q2
VIPIND - 504 Change: -16.05 (-3.09 %)News:
- On a favourable base, sales grew by 56% YoY to Rs 514.7 crore (I-direct estimate: Rs 463 crore). On a pre-covid base, revenue recovery rate is the highest at 125% in Q2FY23 vs. 105% in Q1FY23. On an average Q2 revenues are ~75% of Q1 sales, however Q2FY23 sales stood at 87% of Q1FY23 revenues which is the highest ever compared to any pre-covid year.
- Own manufacturing contribution (Bangladesh & India) has increased significantly over last two years and it is currently contributing ~66% of revenue in Q2FY23 (vs. 35% in Q2FY20). The Company is aspiring to achieve 70-75% of revenue from its India and Bangladesh plants in FY23. The management highlighted that the company had significantly curtailed its dependence of finished goods from China to
- On the profitability front, gross margins improved 100 bps YoY to 48.1%, however continued to remain below pre-covid levels on account of significantly higher RM and freight expenses (65% crude based derivatives) and change in product mix (value segment contributed 37% currently vs. 22% in Q2FY20). Subsequently EBITDA margins stood at 13.9% (up 120 bps YoY, Q2FY20: 16%). Absolute EBITDA came in at Rs 71.6 crore (Q2FY22: Rs 41.8 crore, Q2FY20: Rs 66.2 crore). On account of healthy operational performance, PAT more than doubled to Rs 43.4 crore (131% of Q2FY20).