Higher margin boosts V-Guard bottomline by 54.4%

Consumer electricals and electronics company V-Guard on Wednesday reported a 54.4 percent jump in consolidate net for the quarter to September at Rs 58.75 crore helped by higher margins. The Kochi-based company's consolidated income from operations rose by a marginal 3.1 percent to Rs 623.27 crore.

"Weak demand conditions significantly impacted our overall top-line performance. Despite challenges, our stabilizer and electrical categories performed well. "Pricing and cost cut measures combined with a benign commodity environment helped improve gross margin," managing director Mithun Chittilappilly said.

He guided towards better economic conditions going ahead and exuded confidence in making good progress in growing the business in the non-South markets. During the quarter, its non-South markets contributed 37 percent of the turnover, up from 35 percent in the corresponding quarter previous year.

"Due to the weak demand, we have revised our guidance for topline from 15 percent growth for the full year compared to a 9-10 percent last year. We are hopeful of the situation changing for the good given the initiatives announced by the government," chief financial officer Sudarshan Kasturi said.