16 November 2023, Mumbai
VIP Clothing Ltd faced a setback in Q2 FY24, reporting a net loss of Rs 2 crore ($2,40,658), compared to Rs 1.5 crore in the same period last year. The company's revenue dipped by one percent to Rs 52 crore, attributing the decline to softened demand in the industry during the quarter.
EBITDA margins plummeted from 5.21% in Q2 FY23 to 1.29% in Q2 FY24, primarily due to a 35-person increase in the employee count, aimed at bolstering capabilities for growth programs and promotions.
Nuanced picture
Despite challenges, VIP Clothing Ltd remains focused on expansion, actively adding new distributors and retailers to its network. This strategic move has bolstered market presence and fortified the company's position in key regions.
Expressing confidence in overcoming future obstacles, the company reaffirms its commitment to long-term goals. Engaged in manufacturing, marketing, and distribution of innerwear under brands like VIP, Frenchie, Feelings, and Leader, VIP Clothing Ltd remains resilient in a dynamically evolving market.
