VIP Industries Q3 net profit down 84 percent to Rs 7 crore

Luggage and accessories major VIP Industries Ltd reported an 84 percent decline in consolidated net profit at Rs 7 crore ($8,42,835) for the December quarter, as against Rs 44 crore in the same quarter of the previous financial year.

The company’s revenue for the quarter rose by 4 percent to Rs 546 crore, as against Rs 526 crore in the year-ago quarter.

The company’s total expenses for the quarter grew to Rs 536 crore, as against Rs 478 crore in the corresponding quarter of the previous year.

The drop in profit and the weak operating performance came on the back of higher expenses. The management attributed the increase in other expenses due to elevated freight and accelerated spending on e-commerce.

Founded in 1968, VIP Industries currently has 10 own manufacturing facilities in India and Bangladesh and services customers through its 12,000 points of sales across 1300 towns.