Consumer electrical and electronics company V-Guard Industries posted a 30 per cent increase in profit after tax at ₹27.96 crore during the third quarter of FY’17 against ₹21.48 crore profit shown during the corresponding period of last fiscal.

The net revenue also grew 10.40 per cent at ₹459.58 crore compared to ₹416.28 crore.

Pumps has helped to drive growth for the quarter along with fans and solar water heaters.

The Board commemorating the 40th foundation day of the company, recommended bonus issue of 2 equity shares with face value of ₹1 each for every 5 shares held by capitalising free reserves of the company.

According to Mithun K.Chittilappilly, Managing Director, V-Guard Industries Ltd, the company would be able to perform reasonably well in a market conditions which was affected by various economic decisions. Demonetisation had some impact on some product segment and sales growth of some of the products had come down from earlier quarters.

However, the company has pro-actively introduced various facilities such as arranging finance through NBFC and installing card machines, cash discount facilities to channel partners. The sales in Tamil Nadu region was affected due to the socio-economic situation prevalent in the State and because of cyclone affecting many parts of Chennai and suburban areas.

The business outlook, he said, remains positive considering the upcoming summer season. “We would look at expanding to newer cities, launch newer products that resonate with younger generation”, he added.

A new manufacturing unit at Sikkim is being set up with an investment outlay of ₹12.50 crore for increasing the capacity of stabilizer and the unit is expected to commence commercial production in March 2017. Besides, the manufacturing unit for electric water heater with an investment of ₹ 25 crore would also commence commercial production at Sikkim next year.

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