VIP Industries may lose half its sales due to COVID Hit
Published On: Wednesday, June 3, 2020 | By: Team KnowMyStock
Leading manufacturer of luggage and travel accessories VIP Industries yesterday (2nd June 2020) said it might take a 50 percent hit on its top line in FY21 due to a bleak demand environment for its products following the Covid-19 disruption. The Covid-19 pandemic has brought the travel & tourism industry to a grinding halt, denting VIP Industries’ March quarter sales by Rs 120 crore. The company reported a 28.4 percent YoY drop in consolidated net sales at Rs 311.30 crore against Rs 435 crore in the year-ago quarter. Profit for the quarter fell 72.2 percent to Rs 9.5 crore from Rs 26 crore in the year-ago quarter.
The company believes the negative impact on sales will continue all through FY21. “We expect sales for 2020-21 to be around 50 per cent of FY20 topline. We are trying to reduce fixed overheads to the best possible extent to protect the bottom line,” the company said.VIP Industries’ manufacturing facilities remain shut since March 22 due to the nationwide lockdown. They are yet to resume operations.
Tags: VIP industries COVID-19
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