V-Guard Q2 net profit up by 54.4% at INR 58.75 crore

Vguard Q2 report

Consolidated Net Revenue from operations for the quarter ended September 30, 2019 was Rs. 623.27 crore; an increase of 3.1% over previous year (Rs.604.50 crore).

V-Guard Industries Limited, India’s leading consumer electrical and electronics company, announced the unaudited financial results for the quarterended September 30, 2019.

Q2FY 20 highlights:

• Consolidated Net Revenue from operations for the quarter ended September 30, 2019 was Rs. 623.27 crores; an increase of 3.1% over previous year (Rs.604.50crores).

• Consolidated Profit Before Tax for the quarter ended September 30, 2019 was Rs.78.48 crores; Increase of 62.6% over the previous year (Rs.48.27 crores).

• Consolidated Profit After Tax for the quarter ended September 30, 2019 was Rs.58.75 crores; Increase of 54.4% over the previous year (Rs.38.04 crores).

• During the quarter, Stabilizer and electrical segment registered growth. Overall, subdued consumer demand impacted top-line growth.

• Non-South markets contributed 37% ofturnoverfor the quarter, up from 35.7% in the corresponding quarter of the previous year.

• Results for the quarter include a writeback of Rs.10.12 crores of ESOP provisions no longer required.

Business Outlook:

Commenting on the company’s performance, Mithun. K. Chittilappilly, Managing Director, V-Guard Industries Ltd said “Weak demand conditions significantly impacted our overall top-line performance. Despite challenges, our stabilizer and electrical categories performed well. Pricing actions and cost effectiveness measures combined with a benign commodity environment helped to improve gross margin. We are confident that the macroeconomic conditions will improve in the coming quarters. We continue to make good progress in growing our business in the non-South markets.”