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V-Guard reports Strong revenue growth led by pent up demand

News: Net sales and PAT increased by 46% and 15% YoY to Rs.907 crore and Rs.59 crore, respectively. The EBITDA margin came in better than our estimate at 10.5% (down by 180 bps YoY).

Views: The Q2FY22 was performance was ahead of our estimate on all fronts. This was largely due to favourable base and pent up demand in its key operating regions such as South and East regions, which were impacted severely on second wave of pandemic. Also, lower than expected fall in EBITDA margin in Q2 is attributable to improved utilisation of its new plant in East regions (which was impacted by Covid-19 related restrictions)