Indian electronics maker V-Guard beats Q4 profit view on strong demand

V Guard Industries

16/05/2024 11:48

BENGALURU, May 16 (Reuters) - Indian electronic products manufacturer
V-Guard Industries  VGUA.NS  reported a better-than-expected profit on Thursday,
benefiting from higher demand in its electrical and consumer durables segment.
    Kochi, Kerala-based V-Guard's consolidated net profit rose to 761.7 million
rupees ($9.1 million) for the quarter ended March 31 from 527.2 million rupees a
year earlier. 
    Analysts, on average, expected profit of 751.5 million rupees, according to
LSEG data.
    Cable and wire manufacturers have seen an uptick in demand, driven by growth
in real estate and infrastructure sectors, with additional support from
government spending aimed at boosting the economy.
    Consumers also prepared for above-average summer temperatures, which
propelled the sales of fans and air coolers, fuelling growth for appliance
manufacturers such as V-Guard.
    V-Guard's revenue rose by 17.9% to 13.43 billion rupees, driven primarily by
the company's core electrical segment, which rose 10.7%.
    The segment accounted for about 43.3% of total revenue during the quarter.
    The company's second-largest segment, consumer durables, posted a 27.9% jump
in the quarter, benefiting from a seasonally strong demand quarter. 
    The segment sells fans, air coolers and kitchen appliances.
    Last month, rival Havells India  HVEL.NS  reported a higher quarterly profit
on strong demand for room air conditioners and fans.
    V-Guard shares settled up 2% after the results.
    

($1 = 83.4798 Indian rupees)

 (Reporting by Navamya Ganesh Acharya in Bengaluru; Editing by Eileen Soreng)
 ((Navamya.GaneshAcharya@thomsonreuters.com; +91 8805175330 ;))