Indian appliances manufacturer V Guard misses Q2 profit view on weak demand, margin hit

V Guard Industries

29/10/2024 08:35

Oct 29 (Reuters) - Indian electrical appliances manufacturer V Guard Industries  VGUA.NS  reported a
smaller-than-expected 7.5% rise in its second-quarter profit on Tuesday, as monsoon rainfall dampened demand for cooling
products and surging expenses ate into margins.
    Consolidated net profit rose to 633.9 million rupees ($7.54 million) for the three-month period ended Sept. 30, from
589.5 million rupees a year earlier.
    Analysts, on average, had expected a profit of 685 million rupees, according to estimates compiled by LSEG.
    Revenue from operations climbed 14% to 12.94 billion rupees, while total expenses rose more than 13%. 
    For further results highlights click  urn:newsml:reuters.com:*:nFWN3M50P1.
    
    KEY CONTEXT
    Consumer durable firms struggled with weak demand during the seasonally weak September quarter, said analysts, adding
that inflationary pressures also weighed on consumer sentiment.
    However, demand for products like stabilisers and water heaters rose during the monsoon season.
    Costs of key raw materials copper and aluminium surged, denting the company's margins.
    
    PEER COMPARISON
    
                                     Valuation (next 12      Estimates (next 12          Analysts' sentiment           
                                           months)                months)                                          
                           RIC       PE    EV/EBI  Price/   Revenue      Profit     Mean     # of      Stock to      Div
                                            TDA    Sales   growth (%)  growth (%)  rating*  analyst     price       yield
                                                                                               s       target**      (%)
  V Guard Industries     VGUA.NS    43.38  30.12     -       14.35       29.20       Buy      17         0.89        0.34
     Havells India       HVEL.NS    58.66  39.83    4.53     15.88       23.80      Hold      23         0.86        0.54
   Crompton Greaves      CROP.NS    37.86  24.97    2.56     12.80       29.19       Buy      32         0.80        0.77
 Consumer Electricals                                                                                              
        Voltas           VOLT.NS    58.90  43.38    2.74     17.56       65.33      Hold      33         1.09        0.31
 
    
* The mean of analyst 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
    
    
    JULY-SEPTEMBER STOCK PERFORMANCE 
    
    
-- All data from LSEG IBES

-- $1 = 84.0500 Indian rupees
    

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vgua q2 vs peers    https://tmsnrt.rs/4e5fRX1
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 (Reporting by Ashna Teresa Britto; Editing by Subhranshu Sahu and Mrigank Dhaniwala)
 ((AshnaTeresa.Britto@thomsonreuters.com;))