This is the second largest luggage company in the world and the largest in Asia. A lower demand surely affected sales. More than this, sequentially, topline took a beating due to no sales to Canteen Stores Department (CSD) during the second quarter. Net sales was thus down 36% at Rs.197 crore (QoQ). YoY though, we look at seasonal comparison, net sales showed a 28% rise. Operating costs QoQ have gone up, from 89% of total sales to 97%. The company ended the quarter with a net profit at Rs.4 crore, a turnaround as far as YoY is concerned but QoQ, it is down 83%.

CSD sale forms a major chunk of VIP’s sales, almost 20% of total sales and this virtual stop of CSD sales has affected Q2 numbers. Since then the company has stated that sales to CSD have resumed as internal issues within CSD have been resolved and that could help show better numbers in H2. The company has also undertaken a price hike in October and that should also translate into better margins. The company expects volumes around 9-10% in H2. The rupee, as of now is stable but if volatility comes in again, that could pose some risk.