V-Guard Industries advanced 1.58% to Rs 233.80 after the company's standalone net profit jumped 119.3% to Rs 54.02 crore on 80.1% increase in net revenue to Rs 1,009.64 crore in Q1 FY23 over Q1 FY22.
All segments recorded strong revenue growth. The company's revenue from Electricals segment was Rs 407.20 crore (up 61.6% YoY), revenue from Electronics segment was Rs 303.38 crore (up 90.84% YoY) and revenue from Consumer Durables segment was Rs 299.05 crore (up 99.7% YoY) during the period under review.Cost of goods sold surged 88.9% to Rs 709.27 crore in Q1 FY23 from Rs 375.27 crore in Q1 FY22. EBITDA after other income grew by 83.7% year on year to Rs 86.95 crore in Q1 FY23.
Gross margin declined to 29.8% in the quarter ended 30 June 2022 as against 33% in the quarter ended 30 June 2021 while EBITDA margin (after other income) improved to 8.6% in Q1 FY23 from 8.4% in Q1 FY22.
Mithun. K. Chittilappilly, managing director of V-Guard Industries, said, "The business has delivered a robust performance during the quarter. Topline growth has been strong across all segments. The significant drop in copper prices during June affected Wires margins and this impact is likely to extend to some part of Q2. Costs of other key commodities have seen some reduction from their peaks, although they are stiff higher than long term averages. This has obviated the need for further price increases especially in Consumer Durables and we expect gross margins to recover to their normative levels in over the next 1-2 quarters."
V-Guard Industries makes consumer electrical and electronics products. The company's product range includes voltage stabilizers, inverter, electric & solar water heaters, fans, kitchen appliances, pumps, wires & cables, domestic switch gears, air coolers, etc.
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