PL First Cut – VIP Industries | 3QFY24 | Another quarter of disappointment; EBITDA miss due to higher other expenses

PL First Cut – Jinesh Joshi – Research Analyst, Prabhudas Lilladher Pvt Ltd

VIP Industries | 3QFY24 First Cut | Another quarter of disappointment; EBITDA miss due to higher other expenses | CMP 543| HOLD | TP 674 (Under revision) |

✳️Top-line increased 3.8% YoY to Rs5,464mn (PLe of Rs5,527mn) as compared to Rs5,264mn in Q3FY23/Rs5,461mn in Q2FY24.

✳️Gross profit increased 17.2% YoY to Rs3,050mn (PLe of Rs2,874mn) with margin of 55.8% (PLe of 52.0%) vs a margin of 49.4%/55.5% in Q3FY23/Q2FY24 respectively.

✳️EBITDA decreased 28.4% YoY to Rs523mn (PLe of Rs702mn, CE: Rs860mn) with a margin of 9.6% (PLe 12.7%). Divergence at EBITDA level was due to higher than expected other expenses of Rs1,838mn (PLe Rs1,509mn).

✳️Adjusted PAT decreased 83.8% YoY to Rs72mn (PLe of Rs332, CE: Rs466mn) with a margin of 1.3% (PLe 6.0%) as compared to an adjusted PAT of Rs441mn in Q3FY23/Rs133mn in Q2FY24.

✳️Board declares an interim dividend of Rs2 per share.

✳️We currently have a HOLD rating on the stock with a TP of Rs674.