V-Guard’s Q2 profit drops 12% to ₹51.62 crore

Our Bureau Kochi | Updated on October 28, 2020

Consumer electrical and electronics major V-Guard Industries Ltd has reported a 12 per cent drop in its consolidated PAT at ₹51.62 crore in the second quarter compared to ₹58.75 crore in the corresponding period of the previous year.

The consolidated net revenue from operations for the quarter was ₹623 crore, remained at the same level as that of corresponding period of previous year (₹623.27 crore). The Q2 results for FY20 included a one-off write-back of ₹10.12 crore related to ESOP provisions. The corresponding amount in Q2 FY21 is ₹2.6 crore, the company said in a statement.

The cash flow from operations continues to be strong, arising from prudent working capital management. Pumps, fans and digital UPS categories performed well during the quarter. The company also launched a water purifier, breakfast appliances and kitchen hobs and chimneys during the period under review.

Commenting on the company’s performance, Mithun K Chittilappili, Managing Director, V-Guard Industries Ltd, said: “During the quarter, most of our market were back to normal levels except Kerala which was impacted by the recent surge in Covid infections. We also had to content with significant supply disruptions as our Sikkim manufacturing unit and some key vendors suffered prolonged stoppages due to Covid-related reasons. During this quarter, we launched a range of new products in water purifier, breakfast appliances and kitchen hobs and chimneys. With supply issues having been resolved and the onset of the festive season, we expect to get back on to the growth path during the coming quarter.”

Published on October 28, 2020

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