V-Guard Industries Ltd share Price

V-Guard is among India’s leading fast moving consumer electrical goods companies with market leadership position in the stabiliser business.

• The company has a wide portfolio of products ranging from switchgears, water heaters, stabilisers, fans and many more
• V-Guard has maintained strong return ratios with RoE and RoCE at ~18% and ~24%, respectively (three year’s average)

Electricals and consumer durable segments drive topline growth but higher raw material costs drag EBITDA margins

• Revenue growth of ~24% YoY to ₹ 1058 crore in Q4 was led by 33% & 32% growth in electrical and consumer durable segments, respectively
• EBITDA margin declined 242 bps YoY to 10.5% due to higher RM costs

Lower EBITDA margin resulted in flattish PBT of ~₹ 10 crore in Q4. However, PAT was up by 31% YoY to ~₹ 90 crore supported by lower tax outgo

Q3FY23 Quarterly Result Announced for V-Guard Industries Ltd.

Electrical equipment firm V-Guard Industries announced Q3FY23 results:

• Consolidated Q3FY23 & 9MFY23:
  • Net revenue from operations for Q3FY23 is Rs 980.84 crore a growth of 1.4% over the revenue recorded in the corresponding period of the previous year (Rs 967.57 crore).
  • Profit after tax for the quarter is Rs 39.29 crore as against Rs 53.92 crore in the corresponding period of the previous year.
  • Net revenue from operations for 9MFY23 is Rs 2,985.90 crore; a growth of 22.3% over the revenue recorded in the corresponding period of the previous year (Rs 2,441.02 crore).
  • Profit after tax for 9MFY23 is Rs 136.32 crore as against Rs 138.86 crore in the corresponding period of the previous year.

Commenting on the company's performance, Mr. Mithun. K. Chittilappilly, Managing Director, V-Guard Industries Ltd said "Turnover growth for Q3 was 1.4% YoY due to a high base, while the CAGR for the past three years is at 15.8%. The Durables segment continues to grow well. We are making sustained progress in growing the business in the non-south markets. Our A&P spends have returned to normal levels after two years of lower spending during Covid. Margins are still lower than pre-Covid levels especially in Durables, as were holding more than normal inventories at a higher cost. With inventory levels have come down, we should see margins reverting to pre-Covid levels in the next 1- 2 quarters."

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