Leading consumer electronics player V-Guard today reported a marginal 2 per cent decline in net profit for the March quarter at Rs 20.07 crore on higher tax outgo.
Net revenue from operations during the quarter rose 4.5 per cent to Rs 441.60 crore, the company said in a statement.
"Lack of growth in bottomline was partly due to higher tax outgo as its tax-free plants have partly come under the tax net in the reporting year after five years of tax-free operations.
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"Another reason has been the challenging market conditions," V-Guard Industries Managing Director Mithun K Chittilappilly said.
For the full fiscal 2015, the company reported a flat net income at Rs 70.72 crore as against Rs 70.13 crore a year-ago, while its revenue rose 15 per cent to Rs 1,745.92 crore.
On business outlook, Chittilappilly said the company expects the environment to improve and will continue to focus on expanding the network in the existing markets.
The company has completed the national roll-out of new service delivery model in the reporting financial year.
He further said that the Kochi-based company is planning to set up its third wire factory in Coimbatore which currently houses its wire and cable factories.
The work is expected to be completed over the next two years.
Meanwhile, the board of the company has recommended a dividend of Rs 4.50 per share.
