V-Guard posts stupendous Q2; profits up 70 per cent to Rs 39 crore

India’s leading consumer electrical and electronics company, V-Guard Industries has announced its results for the second quarter that ended on September 30, 2016 of FY 16-17 post market hours. Company has posted an increase in profits by 70 per cent y-o-y to Rs 39 crore.

Net revenue from operations for the quarter in review stand at Rs 493 crore as against Rs 431 crore, representing a growth of 14 per cent y-o-y. Owing to better market conditions, products like Electric Water Heaters, Pumps, Fan and Digital UPS have done extremely well during the quarter under consideration.

EBITDA has seen a jump of 46 per cent at Rs 53.28 crore in Q2 as compared to Rs 36.47 crore achieved in the corresponding quarter of the last fiscal. Margins for the quarter have also expanded by 235 basis points in the September quarter. Reduction in cost of goods sold is due to reduced input cost; and continued cost savings from supply chain initiatives helped improve margins.

Mithun Chittilappilly, MD, V-Guard Industries Ltd said, “We have improved the top line growth when compared with the corresponding quarter of the previous year. We will be expanding to the north markets and expand our range in the kitchen and home appliances range to cater to a wider audience’’.