Companies

V-Guard Industries posts sharp fall in Q4 net; full-year profit up 12%

Our Bureau Bengaluru | Updated on June 01, 2020 Published on June 01, 2020

Consumer electrical and electronics company V-Guard Industries Ltd on Monday said it had registered a consolidated net profit of ₹188.25 crore for FY20, an increase of 12 per cent over the previous year figure of ₹168 crore.

Speaking to BusinessLine, Sudarshan Kasturi, Senior VP & Chief Financial Officer, V-Guard Industries, said: “The rise in net profit for the full year has been the result of growth margin improvement.”

Consolidated net revenue from operations for FY20 stood at ₹2,502.94 crore, a fall of 3.5 per cent over the previous year’s ₹2,594 crore.

Consolidated profit after tax for the quarter ended March 31, 2020 was ₹32.23 crore, down a steep 47.45 per cent over the previous-year period’s ₹61.39 crore. Net revenue for the quarter was ₹541.14 crore, a decline of 27.45 per cent (₹745.78 crore).

Explaining the reasons, Kasturi said: “March is a big month for us, especially the second half. That’s the time when orders for the fiscal year ending and ensuing summer months come in. We lost on that.”

“April was almost a washout. In May, however, we have done about 70 per cent of last year. So, it’s been a good month,” he said.

The top cities in the country continue to remain under a lockdown. So, he doesn’t see much action from these geographies.

“Our wire factory is the only that’s working now, and that too about 25-30 per cent. March sales did not happen, so there is inventory,” Kasturi said. It will take a while before normalcy returns, he added.

Published on June 01, 2020
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