VIP Clothing Limited has informed the Exchange about Investor Presentation

CIN: L18101MH1991PLC059804 Registered Office: C-6, Road No.22, M.I.D.C., Andheri (East), Mumbai – 400 093

Q4 FY23 and Full Year FY23 – Earnings Update

“Back to Black, VIP embarking on a journey to robust long term sustainable growth”

Revenue from Operations reported at ₹516.30 Mn in Q4 FY23 vs ₹441.56 Mn for Q3 FY23

EBITDA stands at ₹48.76 Mn in Q4 FY23 vs ₹40.28 Mn for Q3 FY23

Adj. PAT (excl. exceptional items) at ₹19.76 Mn in Q4 FY23 vs ₹15.52 Mn for Q3 FY23

Net cash & cash equivalents increased by ₹99.35 Mn in FY23 vs -₹29.56 Mn in FY22

Mumbai, 26th May 2023: VIP Clothing Ltd. (VIP) is an established innerwear manufacturer with a portfolio of marquee brands like VIP, Frenchie, Feelings, and Leader. The company in its board meeting held on 26th May 2023 has inter-alia considered and approved the audited Financial Results of the Company for the fourth quarter and year ended on 31st March 2023 as one of its agenda.

Financial Statement Highlights for Q4 FY23 v/s Q4 FY22 v/s Q3 FY23 Q4 FY22

Particulars (₹ in Mn)

YoY%

Revenue from operations EBITDA (excl. other income) EBITDA Margin (%) Adj. PAT *Q3 FY23 Adj. PAT excludes an exceptional item of ₹61.3 Mn pertaining to profit on sale of Umbergaon unit *Q4 FY22 Adj. PAT includes deferred tax credit of ₹10.68 Mn

486.92 35.71 7.33% 20.88

6.03% 36.5% +211bps

Q4 FY23 516.30 48.76 9.44% 19.76

Q3 FY23 441.56 40.28 9.12% 15.52

Financial Statement Highlights for full year FY23 v/s full year FY22

Particulars (₹ in Mn)

Revenue from operations EBITDA (excl. other income) EBITDA Margin (%) Adj. PAT *FY23 Adj. PAT excludes an exceptional item of ₹61.3 Mn pertaining to profit on sale of Umbergaon unit

YoY% 9.65% 2,006.40 1,829.77 67.04 88.1% 3.66% +262bps -22.13

126.13 6.29% 21.75

FY23

FY22

Cash Flow Statement: Particulars (₹ in Mn) Cash Flow from Operations Cash Flow from Investing Cash Flow from Financing Net increase / (decrease) in cash and cash equivalents

FY23

FY22

131.24 110.76 -142.65 99.35

-35.04 -1.63 7.16 -29.56

• Cash flow from operations improved from -₹35.04 Mn in FY22 to ₹131.24 Mn in FY23 driven

by improvement in working capital and profitably increasing scale of operations

"Driving Profitable Growth: Maximizing Returns with Sustainable Success"

Revenue from Operations (₹ in Mn)

EBITDA (₹ in Mn) & EBITDA Margins

₹ 2,500.00

₹ 2,000.00

₹ 1,500.00

₹ 1,000.00

₹ 500.00

₹ 0.00

0.75x

0.70x

0.65x

0.60x

0.55x

0.50x

0.45x

0.40x

₹ 1,829.77

₹ 2,006.40

₹ 1,430.52

₹ 140.00

₹ 120.00

₹ 100.00

₹ 80.00

₹ 60.00

₹ 40.00

₹ 20.00

₹ 0.00

3.66%

3.53%

4 0 . 7 6 ₹

5 4 . 0 5 ₹

6.29%

3 1 . 6 2 1 ₹

7.00%

6.00%

5.00%

4.00%

3.00%

2.00%

1.00%

0.00%

FY21

FY22

FY23

FY21

FY22

FY23

EBITDA

EBITDA Margin (%)

Asset Turnover

Working Capital Days

0.71x

0.65x

0.54x

400

350

300

250

200

150

100

50

0

347

279

251

FY21

FY22

FY23

FY21

FY22

FY23

Management Discussion and Analysis: *Figures in ₹ Mn, unless specified

• VIP delivered a strong financial performance for the entire year ending March 31, 2023, the revenue from operations for FY23 increased by 9.65% to ₹2,006.40 Mn from ₹1,829.77 Mn in FY22. The growth is attributed to:

o Growing inclination towards recognized brands o Growing urbanization which is fueling the demand for quality innerwear o Strengthened brand visibility o Diversified product portfolio

Q4 & FY23 Earnings Update

Captive IR Strategic Advisors Pvt. Ltd.

Increasing Profitability: • Gross Profit increased by 15.99% to ₹627.17 Mn in FY23 from ₹540.73 Mn in FY22 and margins

improved from 30.99% to 29.15% over the same period

o Driven by effective inventory cost management and enhanced operational efficiency

• EBITDA increased by 88.1% to ₹126.13 Mn in FY23 from ₹67.04 Mn in FY22 and margins increased

to 6.29% in FY23 from 3.66% in FY22

o Lead by better product mix and increase in the scale of operations

• As of 31st March, 2023 our inventory stood at ₹ 807.17 Mn a decrease from ₹923.1 Mn as on 31st

March, 2022

o Lead by asset monetization and divestment of an underutilized facility in Umbergaon

Improving Working Capital Days and Asset Turnover Ratio: • The

implementation of optimized operational processes and effective

inventory/asset management served as key drivers for the notable improvements in asset turnover and the reduction of working capital days.

FY23

FY22

Particulars (₹ in Mn)

FY23

FY22

Balance Sheet Statement: Particulars (₹ in Mn)

Assets

PP&E Right of use assets

Other intangible assets

Investments Loans Other financial assets

Other Non-Current Assets

252.74 27.12

693.73

0.03 1.45 8.87

86.90

319.42 24.80

693.79

0.03 0.99 10.00

72.89

Equity Share Capital Other Equity

Equity and Liabilities 165.19 1,346.55

165.19 1,168.73

Shareholders Fund

1,511.74

1,333.92

Borrowings Lease Liabilities Other financial liabilities

Provisions

Non-Current Assets

1,070.84

1,121.90

Deferred tax liabilities

Inventories

Trade Receivables Cash & Cash Equivalents Bank balances other than cash and cash equivalent Loans Other Financial Assets Current tax assets (net) Other Current Assets

807.17

664.61 112.73 38.38

1.92 13.82 3.51 136.04

923.09

604.14 13.38 37.24

0.81 1.49 4.28 141.21

Non-Current Liabilities

Borrowings

Lease Liabilities Trade Payables Other Financial Liabilities Current Tax Liabilities Provisions Other current liabilities Current Liabilities

68.58 13.81 52.65

10.94

66.32

212.30

786.42

17.33 283.45 25.67

100.29 13.40 55.29

10.65

62.71

242.34

902.62

17.36 314.12 31.95

0.80 6.04 5.27 1,124.97

0.00 0.77 4.47 1,271.29

Current Assets

1,778.16

1,725.64

Total Liabilities

1,337.27

1,513.62

Total Assets

2,849.01

2,847.55

Total Equity and Liabilities

2,849.01

2,847.55

Q4 & FY23 Earnings Update

Captive IR Strategic Advisors Pvt. Ltd.

Growth Drivers • Higher Disposable Income enabling increasing shift to organised brand • • • • Emergence of purpose-specific innerwear (athleisure) widening the market

Increase in Urban population Increased shift in organised retail Increased involvement in branded innerwear

Business Outlook • Foraying into newer segments with focus on athleisure clothing and women’s division • The company is targeting to onboard 12 new distributors per month in order to increase its

market presence

• Augmenting technology to increase efficiency by rolling out a distributor management system • Strategically broadening

its reach within established markets while exploring new

opportunities in both domestic and international markets.

Financial Outlook • The management expects the revenue to be in the corridor of ₹2,500.00 Mn to ₹3,000.00 Mn for FY24, primarily fueled by enhanced brand visibility and expanding consumer spending on fashion and personal care goods

• EBITDA margins for Q1 FY24 will majorly be in line with Q4 FY23 margins. All efforts as

highlighted above will be made to improve the margins going forward

Management Comment: “We are delighted to announce that VIP has achieved stellar financial performance driven by our strategic initiatives and commitment to excellence.

The robust financial performance for the financial year 2023 can be attributed to the Company's strong brand positioning, effective marketing strategies, strong distributorship, and the ability to tap into growing demand for high-quality innerwear. In addition, we remain focused on cost optimization and enhancing overall operational efficiency, which has contributed significantly to its increased profit margins and bringing the Company back to profitability.

Our consistent focus in building a strong brand identity has translated into widespread consumer adoption of our products. As a result, we are seizing the opportunity to capture more market share while expanding into new product lines. The Company through its consistent strategic efforts has adequate resources and liquidity to invest in manpower and to drive and deliver future growth by

Q4 & FY23 Earnings Update

Captive IR Strategic Advisors Pvt. Ltd.

investing in product research, marketing activities, dealer/distributor network building and build capacities in an asset-light manner.

Further, we are thrilled to announce that we are one of the pioneers of a new product line housed under 'Frenchie U-19' brand aimed at filling the void in the teenager innerwear market and meeting the specific requirements of teenagers. Our innovative approach to product development will meet the unique needs and preferences of this important demographic, and we are proud to be leading the way in this exciting new market.

VIP is at a cusp of its transformational journey and aims to further enhance its asset turnover, increase profitability, further improve working capital days, streamline manufacturing and sourcing process, improve advertising efficiency and leverage technology to drive growth while boosting brand recallability with customers. We are confident that the above initiatives will give us a long runway for growth and create value for our stakeholders.”

About VIP Clothing Limited Incorporated in 1991, headquartered in Mumbai, VIP Clothing Ltd. (“VIP” or “The company”) pioneered the branded innerwear market in India with a focus on comfort quality. The company is engaged in the business of manufacturing, marketing and distribution of Men’s and Women’s innerwear and socks under the brand name VIP, Frenchie, Feelings and Leader. VIP has in-house manufacturing facility located in Tamil Nadu and is accredited with TUV- ISO 9000 certificate that reflects its emphasis on Quality Management System, designing, manufacturing and delivery. It is one of the India’s leading intimate apparel company providing intimate wear to consumers across various segments under different brands and possesses one of the widest and largest sales and distribution network for innerwear products. The company has more than ~450 distributors & wholesalers network, ~180 sales and marketing professionals, and ~35,000 retailers network.

Archana Mungunti VIP Clothing Limited Email: archana.mungunti@viporg.com Contact: 022-40209000

Krunal Shah/Naman Maheshwari Captive IR Strategic Advisors Pvt Ltd krunal@cap-ir.com/naman@cap-ir.com Contact: +91-93724 67194

Disclaimer: CERTAIN STATEMENTS IN THIS DOCUMENT MAY BE FORWARD LOOKING STATEMENTS. SUCH FORWARD-LOOKING STATEMENTS ARE SUBJECT TO CERTAIN RISKS AND UNCERTAINTIES LIKE GOVERNMENT ACTIONS, LOCAL POLITICAL OR ECONOMIC DEVELOPMENTS, TECHNOLOGICAL RISKS, AND MANY OTHER FACTORS THAT COULD CAUSE OUR ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE CONTEMPLATED BY THE RELEVANT FORWARD- LOOKING STATEMENTS. VIP CLOTHING LIMITED WILL NOT BE IN ANY WAY RESPONSIBLE FOR ANY ACTION TAKEN BASED ON SUCH STATEMENTS AND UNDERTAKES NO OBLIGATION TO PUBLICLY UPDATE THESE FORWARD-LOOKING STATEMENTS TO REFLECT SUBSEQUENT EVENTS OR CIRCUMSTANCES.

Q4 & FY23 Earnings Update

Captive IR Strategic Advisors Pvt. Ltd.