VIP Clothing Posts Negative Growth In Q1 FY25
VIP Clothing, a leading innerwear manufacturer known for its marquee brands such as VIP, Frenchie, Feelings, and Leader, announced its unaudited financial results for the first quarter ended June 30, 2024.
Highlights
- Revenue from operations: Rs 501.20 mn, compared to Rs 536.64 mn in Q1 FY24.
- EBITDA: Rs 28.06 mn, down from Rs 35.29 mn in Q1 FY24, with an EBITDA margin of 5.60%.
- PAT: Rs 2.35 mn, reflecting a PAT margin of 0.47%.
- VIP Clothing onboarded eight new distributors in Q1 FY25 to strengthen its market presence in target regions.
VIP Clothing’s management expressed optimism about the company’s performance, highlighting early signs of demand recovery in key markets. The company reported revenue of Rs 501.20 mn, driven by increased consumer demand and stabilization of yarn prices, leading to an EBITDA of Rs 28.06 mn. PAT for Q1 FY25 stood at Rs 2.35 mn.
Looking forward, VIP Clothing expects revenue growth of 15% to 20% in the next quarter, supported by strong product demand. EBITDA is anticipated to rise by approximately 1% due to economies of scale. The company also plans to explore export opportunities in Ghana starting next quarter and continues to invest in expanding its e-commerce presence, which has shown significant growth potential.
