Indian appliance maker V-Guard's Q1 profit beats estimates on strong demand

V Guard Industries

24/07/2024 10:00

BENGALURU, July 24 (Reuters) - India's V-Guard Industries  VGUA.NS  posted a first-quarter profit
that beat analysts' estimates on Wednesday, driven by strong demand for its electrical products which range
from kitchen appliances to water heaters.
    The company's consolidated net profit rose 54% to 989.7 million rupees (nearly $12 million) in the
three-month period ended June, beating analysts' average estimates of 845.8 million rupees, according to LSEG
data.
    Revenue from operations climbed 22% to 14.77 billion rupees, also beating estimates of 14.07 billion
rupees. 
    For further results highlights click  urn:newsml:reuters.com:*:nFWN3JF2JL.
    
    KEY CONTEXT
    The country's consumer durables sector experienced healthy demand during the quarter due to severe summer
and despite price hikes, analysts said.
    The summer season, which extended into June this year, increases demand for a host of appliances such as
fans and air coolers as well as for products like voltage stabilizers to protect against power surges that
are frequent during the summers.
    Besides that, V-Guard also benefited from demand for its cables and wires due to the rising construction
activity in the real estate and infrastructure sectors.
    
    PEER COMPARISON
    
                                                 Estimates (next 12        Analysts' sentiment       
                                                      months)                                        
                    RIC        PE     EV/EBITD  Revenue     Profit    Mean      # of      Stock to   Div
                                      A         growth (%)  growth    rating*   analysts  price      yield
                                                            (%)                           target**   (%)
 V Guard             VGUA.NS   53.32     35.18    13.49      29.72    Buy             18    1.15         0.31
 Industries                                                                                          
 Havells India       HVEL.NS   61.23     43.02    21.03      28.30    Hold            21    0.94         0.51
 Crompton Greaves    CROP.NS   44.54     29.48    12.50      31.18    Buy             31    1.05         0.69
 Voltas              VOLT.NS   57.09     43.45    16.52      107.60   Hold            34    1.10         0.37
 * The mean of analysts' ratings standardised to a scale of "strong buy", "buy", "hold", "sell", and "strong
sell"
** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is
trading above the PT
    
    APRIL TO JUNE STOCK PERFORMANCE
    -- All data from LSEG
    -- $1 = 83.7075 Indian rupees

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 (Reporting by Kashish Tandon in Bengaluru; Editing by Sherry Jacob-Phillips)
 ((Kashish.Tandon@thomsonreuters.com; 8800437922;))