V-Guard Industries surges on 2:5 bonus issue; good Q3 results

The stock surged 8% to Rs 208 on the BSE in an otherwise weak market

V-Guard Industries has surged 8% to Rs 208 on the BSE in early morning trade in an otherwise weak market after the board recommended the issue of bonus shares in the ratio of 2:5 (two shares for every five shares held).

The company engaged in consumer electrical and electronics business has reported 30% year on year (YoY) jump in net profit at Rs 28 crore for the quarter ended December 2016 (Q3FY17). Net revenue increased 10% at Rs 460 crore on YoY basis.

“Demonetization had some impact on some product segment and sales growth of some of the products had come down from earlier quarters. Sales in Tamil Nadu Region was affected due to the socioeconomic situation prevalent in the State and because OJ cyclone affecting many parts of Chennai and suburban areas,” said Mithun Chittilappilly, managing director, V-Guard Industries.

The company said the board also considered the commencement of commercial production of stabilizers and electric water heaters in March 2017 at the new manufacturing facilities set up at Sikkim.

At 09:32 am; the stock was up 6% at Rs 204 on the BSE as compared to 0.47% decline in the S&P BSE Sensex. A combined 785,000 shares changed hands on the counter on the BSE and NSE.