V I P Industries Reports Negative Financial Performance in Q1 FY25

V I P Industries, a midcap consumer durables company, recently announced its financial results for the quarter ending June 2024. The company’s stock has been given a ‘Strong Sell’ call by MarketsMOJO.

According to the financials, V I P Industries has seen a negative performance in the quarter, with a score of -19, which has improved from -29 in the last three months. However, there are some positive aspects to the company’s performance.

The net sales for the quarter were the highest in the last five quarters, at Rs 638.89 crore. The near-term sales trend is also positive for the company. However, there are some areas that are not working in V I P Industries’ favor.

The Profit Before Tax (PBT) less Other Income has fallen by 96.63% year on year, at Rs 1.65 crore. The near-term trend for PBT is very negative. Similarly, the Profit After Tax (PAT) has also fallen by 89.5% year on year, at Rs 4.04 crore. The near-term trend for PAT is also very negative.

The company’s operating cash flow for the year is at its lowest in the last three years, at Rs -131.70 crore. This indicates a decline in cash revenues from business operations. Additionally, the interest cost has increased by 10.40% quarter on quarter, with the highest being Rs 18.47 crore in the last five quarters. This suggests that the company has increased its borrowings.

Furthermore, the company’s non-operating income is 55.53% of the PBT, which is a cause for concern as it indicates a high reliance on non-business activities. Lastly, the debt-equity ratio for the last five half-yearly periods is at its highest, at 1.29 times. This shows that the company is borrowing more to fund its operations, which may lead to a stressed liquidity situation.

Overall, V I P Industries’ financial performance for the quarter ending June 2024 has been negative, with some positive aspects. Investors should carefully consider these factors before making any investment decisions.