The revised outlook for the company’s bank loan facilities of ₹424 crore, is on account of factors such as continued liquidation of soft luggage inventory, consumer preferences leading to falling average selling prices, and the intense competition in the mid-price segment, the agency said.
In May, the luggage and travel gear manufacturer reported a wider net loss of ₹27.4 crore for the quarter ended March 2025, compared to a loss of ₹23.9 crore a year earlier. The company’s revenue also declined 4.3% to ₹494 crore from ₹516 crore in the same quarter last year.
Despite the VIP brand’s standing in the luggage industry and its diversified product and revenue profile, the company’s strengths are partially offset by exposure to intense competition from organised and unorganised players and the large working capital requirement, CRISIL said.
The Mumbai-based company operates in the organised luggage segment and offers products under brands such as VIP, Skybags, Carlton, Aristocrat, and Caprese.
Meanwhile, CRISIL Ratings stated that the company’s financial risk profile is comfortable and it does not have any long-term debt.
The agency also reaffirmed its rating for ₹50 crore commercial paper at CRISIL A1+.
The company’s shares are up 12.2% on Wednesday, June 11, trading at ₹415.80 on the BSE.
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