India's V-Guard Q1 profit jumps 20% on firm demand for electronic products

V Guard Industries

09/08/2023 10:27

BENGALURU, Aug 9 (Reuters) - India's V-Guard Industries
 VGUA.NS  reported a 20.2% surge in first-quarter profit on
Wednesday, aided by strong demand for its electronics segment,
sending its shares up nearly 11%.
    Consolidated net profit for the electronic products 
manufacturer was at 642.2 million rupees ($7.75 million)for the
quarter ended June 30, the Kochi-based company said in a filing.
    Summer in India that spans from April to June boosts demands
for air conditioners and inverters, benefiting companies like
V-Guard. 
    Revenue from electronics segment, which accounts for nearly
30% of the company's revenue and includes products including
inverters and air conditioner stabilizers, grew nearly 20%. It
posted a pre-tax profit jump of 36.3%.
    Its biggest segment electricals, which includes products
such as house wiring cables, grew nearly 10%.
    V-Guard's revenue from operations rose 19.3% to 12.15
billion rupees, while its gross margin increased to 32.5%, from
30.5% a year earlier due to softening commodity prices.
    The company expected to post a revenue growth of 14% to 16%,
excluding business from its recently acquired kitchen
appliances-maker 'Sunflame' segment for fiscal 2024, it had said
in the previous quarter's earnings call.
    Last month, larger rival Havells  HVEL.NS  reported an 18.5%
rise in June-quarter profit helped by strong demand for its
cables and wires. However, analysts flagged margin concerns for
the company.
      


($1 = 82.8125 Indian rupees)

 (Reporting by Nishit Navin in Bengaluru; Editing by Rashmi
Aich)
 ((Nishit.Navin@thomsonreuters.com;))