V-Guard posts Q3 profit beat on sturdy demand across segments – Times of India

by The Technical Blogs

V-Guard Industries reported third-quarter profit above estimates on Thursday, as the electronic products maker saw an uptick in demand across segments amid the festive season.
Consolidated net profit rose 48% to 582.4 million rupees ($7 million) in the quarter ended Dec. 31 from a year earlier. Analysts, on average, had expected a profit of 555.1 million rupees, according to LSEG data.
Revenue from the electricals segment, which accounts for 40% of the revenue, rose 8% to 4.73 billion rupees, aiding the Kochi, Kerala-based company. The category includes products like electric water heaters and fans.
Key festivals, such as Diwali and Christmas, prompted retailers to roll out enticing offers.
The quarter also saw improved housing and infrastructure demand and a sturdy recovery in exports, aiding the company’s sales, analysts said.
Revenue rose between 8% and 17% in all four of its segments during the quarter, helping the company’s margins.
V-Guard’s earnings before interest, tax, depreciation and amortization (EBITDA) margin expanded to 8.7% from 6.8% in the year-ago quarter.
The electronics goods maker saw double-digit revenue growth in both south and non-south markets.
Rivals Havells India reported a marginal growth in third-quarter profit aided by an uptick in demand for its wires and cables, while Voltas reported a fall in profit, hurt by higher costs.
V-Guard shares rose as much as 4.6% after results, hitting their highest level since December 20.

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