VIP Industries posted a growth of 83.64% in profit in FY11

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VIP Industries posted a growth of 83.64% in profit
VIP Industries Ltd. posted its unaudited consolidated results for fiscal ending March, 2011 on May 13, 2011. It posted an increase in Net Profits to Rs. 88.7 crore from Rs. 48.3 crore last year, a growth of 83.64%.

The company"s Net Sales grew 17.71% to Rs. 757.7 crore in the fiscal ending March, 2011, compared to Rs. 643.7 crore for the same period last year. Whereas the Net Sales for the quarter ending March, 2011 increased 20.95% to Rs. 166.3 crore compared to Rs. 137.5 crore last year. All the company"s revenue is derived from luggage business.

In the results, the company saw a 19.13% YoY rise in its total expenditure for the Q4 ending March, 2011 to Rs. 145.7 crore. And the increase in the total expenditure for the fiscal ended March, 2011 was 15.16% to Rs. 654.0 crore, compared to similar period last year. This was mainly attributable to higher purchase of traded goods for both the current quarter and the fiscal on grounds of higher sale.

The other income was Rs. 0.4 crore in the Q4, 2010-11 compared to Rs. 0.2 crore for Q4, 2009-10 and decreased to Rs. 0.5 crore for the fiscal ended March, 2011, compared to Rs. 0.6 crore in fiscal ended March, 2010. The company saw an increase in profit after interest but before exceptional item and tax for the Q4 2010-11, of 53.85% to Rs. 22.0 crore compared to Rs. 14.3 crore in the corresponding period previous year.

The growth was higher than sales because of lower growth rate of total expenditure than net sales, lower interest expense and higher other income. On the contrary, for the fiscal ended March 2011, the company"s profit after interest but before exceptional item and tax increased by 50.36% to Rs. 103.3 crore, compared to previous fiscal.

The net interest decreased for Q4, 2010-11, by 62.5% YoY, to just Rs. 0.6 crore and for the fiscal by 60.22% to Rs. 3.7 crore. The total tax expense increased by 39.02% YoY to Rs.5.7 crore for the quarter and increased by 2.82% YoY to Rs. 14.6 crore for the fiscal ended March, 2011. The company"s Net profit increased for Q4, 2011 by an exceptional 79.12% YoY to Rs. 16.3 crore as compared to Rs. 9.1 crore in the corresponding period last year. The company"s EPS increased to Rs. 5.8 in Q4, 2010-11.

As mentioned above, for the year ending March, 2011 the company posted a net profit of Rs. 88.7 crore, an increase of 83.64% compared to last year. The EPS for the fiscal was seen at Rs. 31.4 compared to Rs. 17.1 last year.

Read more about: results, bse, nse, textile, vip inds
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