Q3 2024 V I P Industries Ltd Earnings Call Transcript
Key Points
- VIP Industries Ltd (BOM:507880) recorded a revenue growth of 4% in Q3, with domestic sales growing by 6%.
- E-commerce sales saw a significant increase of 65%, indicating strong online performance.
- The company launched 37 new product ranges between December and March, with visible improvements in stores.
- VIP brand experienced double-digit growth for the first time in a long period, driven by premium launches.
- Gross margins have stabilized at 55-56%, showing improvement in profitability.
- The company faced a poor quarter with underperformance not meeting internal standards.
- Inventory levels have increased, leading to higher warehousing costs and concerns about inventory management.
- EBITDA saw a sharp reduction due to increased freight costs, investments in e-commerce, and professional fees.
- The tax rate was unusually high at 46% for the quarter, impacting net profitability.
- There were multiple resignations at the management level, raising concerns about leadership stability.
Ladies and gentlemen, good morning, and welcome to the Q3 and nine-months FY24 earnings conference call of V.I.P. Industries Limited. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Snighter Albuquerque from Adfactors PR, Investor Relations team. Thank you, and over to you.
Thanks, Yashashri. A very good morning to everyone, and welcome to the Q3 and nine-months FY24 earnings call of V.I.P. Industries Limited. From the senior management, we have with us Ms. Radhika Piramal, Executive Director and Vice Chairperson; Ms. Neetu Kashiramka, Managing Director and Chief Financial Officer.
Before we begin the conference call, I would like to mention that some of the statements made during the course of today's call may be forward-looking in nature, including those related to the future financials and operating performances, benefits and synergies of the company's strategy, future opportunities, and growth of the market or the company's services.
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