Shares of VIP Industries Ltd were trading in the red and hit a 52-week low of Rs 513.15 on 31 January after the company reported a weak quarterly report for October-December.

The luggage manufacturer reported an 84% year-on-year decline in its net profit to Rs 7.15 crore for the quarter under review from Rs 44.10 crore reported in the same quarter last year.

However, the company’s total revenue stood at Rs 546.4 crore, marking a 4% YoY increase from Rs 526.4 crore reported in the same quarter of the previous fiscal year.

The EBITDA (earnings before interest, tax, depreciation, and amortisation) declined by 28% to Rs 52.3 crore during Q3FY24 from Rs 72.96 crore reported in Q3FY23. The EBITDA margins contracted to 9.6% during the quarter from 13.9% recorded in the corresponding period in the previous fiscal year.

Moreover, the company’s Board of Directors declared an interim dividend of Rs 2 per share for the current fiscal year and has set 7 February 2024 as the record date to ascertain the eligibility of shareholders for payment of the interim dividend.

The company said that the decline in profit was due to higher expenses, and the international business suffered from a demand slowdown in the Middle East market segment. The other expense during the quarter jumped over 43% YoY, whereas the finance cost doubled to Rs 15.6 crore from Rs 6.6 crore reported last year.

At 1:41 pm, the shares of VIP Industries were trading 0.018% lower at Rs 543.60 on NSE.