VIP Industries Ltd Q2 posts net loss of Rs 33 crore

Luggage and accessories maker VIP Industries Ltd reported a net loss of Rs 33 crore ($4 million) for the quarter ended September 30, as against a net loss of Rs 13 crore in the year-ago quarter.

The company’s revenue for the quarter declined marginally to Rs 544 crore, as against Rs 546 crore in the corresponding quarter of the previous fiscal year.

“Volume growth stood at 18 percent for Q2 and 14 percent for H1 FY25. Revenue growth remained flat owing to price support for on-line channels netted off in the current year result,” the company said in its investor presentation.

“The share of e-commerce in overall sales for Q2 stands at 45 percent. Aggressive and predatory pricing by online channel has impacted offtake by the traditional channel resulting in de-growth over last year,” it added.

During the quarter, the company extended its fashion category offerings to the general trade channel for better reach and expects strong growth from the category in the coming quarters.

VIP Industries, which owns popular brands such as VIP, Carlton, Aristocrat, Skybags among others is one of the largest players in the luggage and accessories market in India.