VIP Industries shares were locked in a 20 per cent upper circuit at Rs 463.Shares of the Mumbai-based luggage and travel accessories maker - VIP Industries - rose as much as 20 per cent to hit fresh 52-week high of Rs 463.30 a day after the company returned to profit in June quarter.
VIP Industries reported net profit of Rs 3.48 crore compared with loss of Rs 42 crore in the same quarter last year.
VIP Industries revenue from operations jumped five times to Rs 201.75 crore compared with Rs 40 crore in the same quarter a year ago.VIP Industries' operations and financial results for the period ended June were adversely impacted due to the temporary slowdown in its operations caused by fresh restrictions imposed due to the surge in COVID-19, the company said in an exchange filing.VIP Industries gross margin in June quarter came in at 54 per cent mainly due to lower discounts and better mix in favour of higher margin products and price increase, VIP Industries said.
The company's overall expenses declined by 18 per cent to Rs 53 crore on account of reduction in CSR spending and factory related costs also came down as plant was shut for some time.The company recorded double digit earnings before interest, tax, depreciation and amortisation (EBITDA) at 12 per cent of revenue after a gap of five quarters, VIP Industries added.As of 2:18 pm, VIP Industries shares were locked in a 20 per cent upper circuit at Rs 463.