VIP Clothing Limited has informed the Exchange about Investor Presentation
February 14, 2024
To,
To,
The Listing Department, BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai - 400 001.
The Listing Department National Stock Exchange of India Limited Exchange Plaza, Plot No. C/1, G Block, Bandra-Kurla Complex Bandra (East), Mumbai-400 051.
Scrip Code : 532613
Trading Symbol : VIPCLOTHNG
Sub: VIP CLOTHING LTD. – Investor Presentation on the Un-audited Financial Results for the Quarter ended on December 31, 2023.
Pursuant to Regulation 30 of the SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015, we enclose herewith the Investor Presentation on the Un-audited Financial Results for the Quarter ended on December 31, 2023.
The Investor Presentation has been uploaded on the website of the company www.vipclothing.in
This is for your information and record.
Thanking you
Yours faithfully, For VIP Clothing Limited
ARCHANA MUNGUNTI Company Secretary Membership No.: A31071
Page 1 of 1
CIN: L18101MH1991PLC059804 Registered Office: C-6, Road No.22, M.I.D.C., Andheri (East), Mumbai – 400 093
Q3 & 9M FY24 – Earnings Update
Revenue from Operations reported at ₹448.91 Mn in Q3 FY24 and ₹1,509.01 Mn for 9M FY24
EBITDA stands at (₹11.33) Mn in Q3 FY24 and ₹30.73 Mn for 9M FY24
PAT at (₹33.80) Mn in Q3 FY24 and (₹52.51) Mn for 9M FY24
Mumbai, 14th February, 2024: VIP is an established innerwear manufacturer with portfolio of marquee brands like VIP, Frenchie, Feelings and Leader. The company in its board meeting held on 13th February 2024 has inter-alia considered and approved the Unaudited Financial Results of the Company for the third quarter and nine months ended on 31st December 2023.
Financial Statement Highlights
Particulars (₹ in Mn)
Revenue from operations
Other Income
Total Income
Total Expenses excl. D&A & Finance Cost
EBITDA (excl. Other Income)
EBITDA Margin (%)
Finance Cost
Depreciation & Amortization
PBT before exceptional item
Exceptional Item
PBT
Total Tax
PAT
PAT Margin %
Other Comprehensive Income
Net PAT
Diluted EPS
4.41
1.03
0.89%
1.66%
449.93
445.97
448.91
441.56
460.24
Q3 FY24 Q3 FY23 YoY% Q2 FY24 523.45 1.32 524.78 516.70 6.75 1.29% 22.99 6.81 (21.71)
(2.52%)
(11.33)
(38.90)
400.44
9.31%
22.01
41.12
15.52
23.07
6.59
6.95
-
(38.90)
(5.1)
(33.80)
61.32
76.85
25.97
50.88
(7.53%)
11.52%
(0.09)
(33.89)
(0.41)
0.19
51.06
0.62
3.05 (24.77) (4.73%) (1.15) (25.92) (0.30)
9M FY24 9M FY23 YoY%
1,509.01
1,490.09
1.27%
3.29
16.37
1,512.30
1,506.46
0.39%
1,478.28
1,410.43
30.73
2.04%
65.74
20.16
(51.88)
-
(51.88)
0.64
(52.51)
(3.48%)
(2.01)
(54.53)
(0.64)
79.66
(61.42%)
5.35%
72.57
23.99
(0.52)
61.32
60.80
14.20
46.61
3.13%
(1.39)
45.22
0.56
*The Company has conservatively and prudently made a provision of ₹22.5 Mn in relation to certain old receivable in the 9MFY24 period vis a vis a provision of ₹7.5 Mn in 9M FY23 period.
For further information on the Company, please visit www.vipclothing.in
Management Discussion and Analysis: *Figures in ₹ Mn, unless specified • Revenue from operations remained stable at ₹1,509.01 Mn in 9M FY24 versus ₹1,490.10 Mn in 9M FY23. This muted growth was seen due to challenging demand environment across industry • Gross Profit margin remained stable for 9M FY24 and stood at 28.8% as compared to 28.4% in 9M
•
FY23 In 9M FY24, EBITDA amounted to ₹30.72 Mn, reflecting a decrease from ₹77.37 Mn in 9M FY23. This decline in EBITDA resulted from the expansion of both the sales and marketing team, as well as the operations team, aimed at expanding business operations.
Key developments during Q3FY24: • Onboarded ~20 new distributors in Q3 FY24 in order to increase the company’s market presence
in target markets
• The Company launched 3 new products under the brand Feelings and Leader
Management Comment: We are pleased to provide a comprehensive overview of our company's performance in Q3 FY24. The revenue from operations stood at ₹ 448.91 Mn in Q3FY24 compared to Rs. 441.56 Mn in Q3FY23, resulting a 1.66% increase for the period despite Q3 being a seasonally weak quarter further hit by the red sea crisis which impacted export sales. However, we witnessed a sharp decline in our profitability which led to a negative EBITDA of (₹ 11.33) Mn in Q3FY24 due to team building and enhancement exercise, higher offtake of our entry level products and subdued demand trajectory in the industry.
In terms of the performance over 9M FY24 our revenue from operations remained stable ₹1,509.01 Mn in 9M FY24, compared to ₹1,490.09 Mn in 9M FY23, which grew by 1.27% Y-o-Y. EBITDA margin for 9M FY24 stood at 2.04%.
At VIP, we're undergoing a transformational journey and our focused on maintaining our emphasis on sustainable sales practices while safeguarding our operating margins and enhancing overall operating efficiencies. Aligned with our objectives, we remain committed to improving consumer reach and experience, diversifying and enhancing our product range, and driving operational excellence through onboarding best in class talent and adopting digital transformation.
In pursuit of the abovementioned goals, we are committed to expanding our presence across India. Our continuous efforts to augment our reach have not only strengthened our position in core markets but also allowed us to extend into new regions. Moreover, in Q3 FY24, we have successfully onboarded ~20 new distributors. Apart from the traditional channel, we have also started supplying
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to the prestigious Central Police Force Canteen Unit. Further, our focused implementation of Distribution Management System is progressing as planned, optimizing our supply chain and enhancing our understanding of customer needs. This has played a pivotal role in launching 3 new products that align more closely with customer preferences.
Additionally, our latest product offerings have begun to receive preliminary positive responses from the market, largely attributed to our ongoing marketing efforts. We remain committed to allocating dedicated marketing resources for these new products, which will play a pivotal role in diversifying our revenue streams in the upcoming quarter.
To enhance the market presence of our various brands, the Company is strategically investing in marketing activities to with a view to increase brand recall and distinctly showcase the brand's strong value proposition of style, quality, and comfort. We recognize the vast potential for growth in the ecommerce sector, and to effectively seize these opportunities, we've formed a partnership with Cocoblu, a reputable service provider specializing in crafting robust ecommerce marketing strategies. This collaboration aims to maximize our efficiency in capitalizing on the burgeoning opportunities within the ecommerce landscape during the current quarter.
On the industry front, the innerwear market has undergone a notable transformation, witnessing substantial growth over the past decade and showcasing remarkable resilience. Standing at a market size of ₹ 61,091 crores in 2023, the market is anticipated to grow to ₹ 75,466 crores by 2025, with a CAGR of 11.2%.
In summary, VIP Clothing Ltd. is poised for expansion and is advancing successfully in its strategic endeavours. We acknowledge the commitment of our workforce, the confidence of our shareholders, and the backing of our esteemed customers and partners. We are optimistic about our capability to navigate through upcoming challenges and realize our long-term objectives.
About VIP Clothing Limited Incorporated in 1991, headquartered in Mumbai, VIP Clothing Ltd. (VIP) 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
Q3 & 9M FY24 Earnings Update
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products. The Company has more than ~180 sales and marketing professionals, ~38,000 retailers touchpoints and network of ~470 distributors and wholesalers.
Archana Mungunti VIP Clothing Limited archana.mungunti@viporg.com Contact: 022-40209000
Krunal Shah/ Vinayak Shirodkar/ Naman Maheshwari Captive IR Strategic Advisors Pvt Ltd krunal@cap-ir.com/vinayak @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.
Q3 & 9M FY24 Earnings Update
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