Mumbai: VIP Industries Limited has announced its audited annual results for the year ended March 31, 2004.
The company's profit after tax was Rs6.57 crore as compared to last year's Rs4.59 crore, and showed an improvement of more than 43 per cent despite the overall turnover of the company for the year being marginally lower at Rs275.09 crore compared to Rs279.60 crore in the previous year. The profit before tax rose to Rs9.13 crore in 2003-04 from Rs7.98 crore in the previous year.
VIP has maintained a dividend of 20 per cent for the year.
The company continues to exercise rigid control on costs and other expenditure. Although a sum of Rs13.85 crore was spent on the VRS exercise carried out during the year, this is expected to reduce the employee cost in future years. VIP's continued efforts in improving working capital management coupled with the mobilisation of low cost debt has resulted in substantial savings in interest cost.
Higher profits and a reduction in working capital has translated into steady cash flows which have been used to partly fund the acquisition of well known international luggage brand, Carlton, and certain other assets. The brand is expected to be the future growth driver the UK, Europe and South East Asia markets.