VIP Clothing Reports Profit Growth Amidst Cash Flow Challenges and Mixed Market Performance

VIP Clothing, a microcap player in the Garments & Apparels industry, has recently undergone a financial trend adjustment, reflecting its performance metrics for the quarter ending September 2025. The company reported a significant growth in profit after tax (PAT) over the last six months, reaching Rs 4.46 crore, which marks a notable increase. Additionally, the return on capital employed (ROCE) stands at its highest level of 8.00%, and net sales for the quarter peaked at Rs 66.07 crore. The operating profit to interest ratio also reflects a strong position at 2.76 times, while the profit before tax, less other income, reached Rs 3.24 crore.
However, challenges remain for VIP Clothing. The operating cash flow for the year is notably negative at Rs -37.36 crore, and the debtors turnover ratio is at its lowest, recorded at 2.32 times. Furthermore, interest expenses have increased to Rs 7.04 crore, growing at 23.51%.

In terms of market performance, VIP Clothing's stock has shown mixed results compared to the Sensex. Over the past week, the stock returned 1.96%, slightly outperforming the Sensex's 1.68%. However, on a year-to-date basis, VIP Clothing has seen a decline of 26.89%, contrasting sharply with the Sensex's gain of 8.41%. Despite these fluctuations, the company has demonstrated resilience, particularly over a five-year horizon, where it has achieved a remarkable return of 262.07%, significantly outpacing the Sensex's 94.99%.