VIP Industries: Q4FY14 Result Analysis

VIP Industries announced its financial results for the fourth quarter and year ended 31 March, 2014. Topline of the company recorded a double digit growth of 21% to Rs 227 crore in Q4FY14 against Rs 187.6 crore in same period of last year.
However EBITDA of the company declined by 12.3% to Rs 13.5 crore in the said period as against Rs 15.4 crore in Q4FY13. EBITDA of the company dropped mainly due to increase in cost of traded goods that went up by 28% on Y-o-Y basis and was 37% of total revenue of the company in Q4FY14 against 35% in same quarter of previous year. While other operating expenses like employee cost, other expenses remained constant during the said quarter except cost of raw material, which showed improvement and came down to 21% of total revenue from 24% of total revenue in same quarter of previous year.

Bottomline of the company showed exponential growth during Q4FY14 and went up by 285% to Rs 20.4 crore against Rs 5.3 crore in same period last year. The company recorded exponential growth during the said period with the help of profit of Rs 15.9 crore on sale of old investment and property at Bhandup and Mumbai. If we compare profit before tax and exceptional item (PBT) of the company, it showed marginal decrease of 5.8% in Q4FY14 and stood Rs 9.6 crore against Rs 10.2 crore in same period of last year.

Coming to annualized performance for FY14, VIP Industries performance during FY14 was good. Topline of the company showed a considerable growth of 18% to Rs 990 crore in FY14 against Rs 840 crore in same period of last year. Further EBITDA of the company went up 19.4% to Rs 84 crore during the said year against Rs 70 crore in the immediate previous year. Moreover bottomline of the company recorded exponential growth and surged by 85% to Rs 58.4 crore in FY14 against Rs 31.5 crore in FY13.

The Company has announced a final dividend of Rs 1.2 per share for FY14. At CMP of Rs 106.5 per share, the stock is trading at 25.8x of its trailing 12-month earning.