VIP Industries reported 3% revenue growth to ₹578.36 crore in the June quarter compared to ₹561.43 crore in the previous fiscal year, according to reports from CNBC TV18. However, the company continued to face profitability challenges with EBITDA losses of ₹11.12 crore compared to a positive ₹24.65 crore in the same quarter last year. The company's net loss increased significantly to ₹53.56 crore from ₹13.1 crore in the year-ago period, primarily due to inflation in raw materials resulting from crude price hikes.
The company's revenue growth was primarily driven by over 80 new product launches that contributed 50% of total revenue during the quarter, as reported by CNBC TV18. VIP Industries' managing director and CEO Atul Jain highlighted the company's focus on strengthening its brand portfolio, which includes VIP, Skybags, Aristocrat, Alfa and Caprese. The company has been optimizing inventory across its operations and channel network while resetting brand and pricing guardrails to improve market positioning.
According to CNBC TV18, VIP Industries stated that its first phase of business transformation is largely completed and is now targeting faster growth going forward. The company has onboarded a strong leadership team and re-energized its channel ecosystem to build momentum for its next phase of growth. Jain emphasized that with the problems of the past largely resolved, VIP is positioned for its next phase of expansion in the competitive luggage and travel accessories market.
Shares of VIP Industries ended the previous session 1.9% lower at ₹311 apiece, as reported by CNBC TV18. The stock has shown mixed performance with a 3.6% gain in the past month but remains down 18.8% year-to-date. The market reaction reflects investor concerns about the company's continued losses despite revenue growth, highlighting the challenges in achieving sustainable profitability in the competitive luggage industry.
