Shares of VIP Industries fell as much as 2.8% during the day after the luggage company posted a 69.4% drop in its profit after tax for the July-September quarter at Rs 13.28 crore due to higher advertisement costs and other expenses. The profit in the same quarter of the last fiscal stood at Rs 43.40.

The company’s revenue from operations for the quarter under review stood at Rs 546.09 crore, up 6.1% compared to Rs 514.74 crore during the corresponding quarter last fiscal, on the back of a 10% volume growth.

However, the Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) of the company was down 26.1% YoY to Rs 52.9 crore. EBITDA margins declined to 9.7% in Q2FY24 from 13.9% in the year-ago period, while gross margins jumped to 55.5% in the September quarter of 2023 against 48.1% a year ago.

VIP Industries shares dropped to an intraday low of Rs 592.10, down 2.8% from the previous closing price on the National Stock Exchange (NSE). The stock closed at Rs 594.95, 2.36% lower than the last close price. 

Established in 1968, VIP Industries is the largest luggage and travel accessories manufacturer in the country. The company has 10 manufacturing facilities in India and Bangladesh and serves its customers through 12,000 points of sales across 1300 towns.