India's V-Guard posts Q3 profit beat on sturdy demand across segments

V Guard Industries

01/02/2024 09:14

Feb 1 (Reuters) - India's V-Guard Industries  VGUA.NS 
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  HVEL.NS  reported a marginal growth in
third-quarter profit aided by an uptick in demand for its wires
and cables, while Voltas  VOLT.NS  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 Dec. 20. 

($1 = 82.9570 Indian rupees)

 (Reporting by Ashna Teresa Britto in Bengaluru; Editing by
Eileen Soreng)