V-Guard Industries jumped 2.8% to Rs 229.20 after consolidated net profit jumped 29.7% to Rs 44.24 crore in Q3 December 2019 as against Rs 34.1 crore reported in Q3 December 2018.
Consolidated revenue from operations for the quarter ended 31 December 2019 was at Rs 631.89 crore, posting an increase of 5% over previous year's Rs 601.31 crore.The company reported that subdued demand conditions impacted top-line growth the quarter. Consumer durables segment grew well, but other segments were impacted more by the overall slowdown.
Consolidated profit before tax (PBT) for Q3 December 2019 stood at Rs 58.46 crore, up 32.6% from Rs 44.1 crore reported in Q3 December 2018. Tax expenses rose 42.17% to Rs 14.21 crore in Q3 FY20 from Rs 9.99 crore posted in Q3 FY19.
EBITDA margin for Q3 December 2019 improved to 9.5% as against 7.6% posted in Q3 December 2018.
Subdued demand conditions impacted top-line growth the quarter. The consumer durables segment grew well, but other segments were impacted more by the overall slowdown. Non-South markets contributed 38% of turnover for the quarter, up from 37% in the corresponding quarter of the previous year. Gross margins improved across all segments. Low volatility in commodity prices, combined with cost effectiveness measures pricing actions early in the year helped improve margin.
Commenting on company's Q3 2019 performance, Mithun Chittilappilly, Managing Director, V-Guard Industries said "Slowness in consumer demand continued during Q3 FY 20, which impacted our overall top-line growth. Under these circumstances, we are making good progress in the non-South markets and new categories. Margin and working capital management remained robust. We are hopeful that we will be able to get back to higher growths in the coming quarters, once the macroeconomic conditions improve.
V-Guard Industries makes consumer electrical and electronics products. The company's product range includes voltage stabilizer, digital UPS, electric water heaters, solar water heaters, etc.
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