V-Guard's Q2 net jumps 35% to Rs 59 cr, net revenue from ops rises 15%

V-Guard Industries Ltd, a consumer electricals and electronics major, posted a 35 per cent jump in net profit in Q2FY24 at Rs 58.95 crore, compared to Rs 43.66 crore recorded in the corresponding period last year.

The company’s consolidated net revenue from operations for the quarter was Rs 1,133.75 crore, up 14.9 per cent over the revenue recorded in the corresponding period last year (Rs 986.55 crore).  “Our electronics and electrical segment has done well, leading to a rise in profits. This comes after last year's numbers, where we saw higher input costs. Raw material costs have stabilised now. There was a bit of slowdown on the durable side, where there was a bit of sluggishness in customer demand and the weather was also not that good,” said Sudarshan Kasturi, chief financial officer, V-Guard Industries.

The company’s consolidated profit after tax for the six months ended September 30 stood at Rs 123.17 crore, a growth of 26.9 per cent, as against Rs 97.03 crore reported last year. Consolidated net revenue from operations for the same period came in at Rs 2348.51 crore, a growth of 17.1 per cent over the revenue recorded in the corresponding period last year (Rs  2005.05 crore).

“The second quarter witnessed subdued consumer demand, especially in discretionary categories like consumer durables, thereby impacting topline growth. Gross margins improved further during the quarter and are now moving closer to pre-Covid levels. We continue to invest in capacity enhancement and capability for the long term. Cash generation remained strong with further reduction in working capital. Consumer response for some of our recent product launches has been positive and we expect a strong topline growth in the second half of the year,” said Mithun K Chittilappilly, the managing director of the company.