Apparels & accessories company VIP Industries announced Q4FY23 & FY23 results:
- Net sales at Rs 451 crore, up 27%
- Gross margins have improved to 58.3% from 54% during Q4FY22, up 430 bps
- EBITDA margin improved 450 bps at 15.1% from 10.6%; EBITDA at Rs 69 crore, up 79%
- Profit before exceptional items at Rs 41 crore, up 154%
- Net sales at Rs 2,082 crore, up 61%
- EBITDA margin improved 220 bps at 15.8% from 13.6%; EBITDA at Rs 331 crore, up 83%
- Profit before exceptional items at Rs 229 crore, up by 165%
- Profit after tax at Rs 152 crore in FY23 as compared to Rs 67 crore in FY22 - growth of 128% YoY
Speaking on the performance, Anindya Dutta, Managing Director, VIP Industries, commented, "I am pleased to announce that VIP Industries has delivered a robust performance for the fourth quarter and financial year of 2023. The company achieved a growth rate of 61% 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% from a base of 25%, and sharp input cost inflation witnessed in the first half of the year. The Q4 GM of 58% is reflective of enhanced cost efficiencies across the value chain and a strategic shift to in-house manufacturing coupled with softening trend on input costs.
Our journey towards enhancing our own manufacturing has progressed well during the year. We have deployed approx Rs 100 crore capex investment in creating technically superior factories both in India and Bangladesh and in line with our growth plans, we will invest Rs 200 crore in FY24 to further expand our manufacturing capacities.
We are poised well for continued accelerated growth going forward with a focus on innovations, investment behind our power brands, and increasing accessibility. 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. With our extensive reach, we currently have the highest penetration across almost 1,200 towns in the country. As part of our growth strategy, we aim to be present in every town with a population of over 50,000 by the middle of the next financial year.
In FY24, we will also focus on building strong foundations in future growth areas of expansion in international markets and in women’s fashion accessories through the brand Caprese.
With our diversified product portfolio, we aim to establish each of our brands as a leader in their respective categories given their unique propositions. We remain committed to our vision of being a dominant leader in the luggage and travel gear industry, striking a healthy balance between market share, and margins and ensuring sustainable value creation for our stakeholders."