PL First Cut – VIP Industries | 2QFY24

PL First Cut – VIP Industries | 2QFY24 – Jinesh Joshi – Research Analyst, Prabhudas Lilladher Pvt Ltd

VIP Industries | 2QFY24 First Cut | EBITDA miss due to higher other expenses | CMP 593 | Accumulate | TP 721 |

✳️Top-line increased 6.1% YoY to Rs5,461mn (PLe of Rs5,508mn) as compared to Rs5,147mn in Q2FY23/Rs6,361mn in Q1FY24.

✳️Gross profit increased 22.4% YoY to Rs3,031mn (PLe of Rs2,699mn) with margin of 55.5% (PLe of 49.0%) vs a margin of 48.1%/49.5% in Q2FY23/Q1FY24 respectively.

✳️EBITDA decreased 26.1% YoY to Rs529mn (PLe of Rs700mn) with a margin of 9.7% (PLe 12.7%) vs a margin of 13.9%/12.7% in Q2FY23/Q1FY24 respectively.

Divergence at EBITDA level was due to higher than expected other expenses of Rs1,841mn (PLe Rs1,322mn)

✳️Adjusted PAT decreased 69.4% YoY to Rs133mn (PLe of Rs344mn) with a margin of 2.4% (PLe 6.2%) as compared to an adjusted PAT of Rs434mn in Q2FY23/Rs320mn in Q1FY24 with margins of 8.4%/5.0% in Q2FY23/Q1FY24 respectively.

✳️We currently have an Accumulate rating on the stock with a TP of Rs721.