V-Guard gains 6%, hits 52-week high as profit more-than-doubles in Q4

The company's revenue from operations during January-March 2021 jumped 58.04 per cent YoY to Rs 855.19 crore

Shares of V-Guard Industries climbed 6 per cent to a fresh 52-week high of Rs 265.40 on the BSE on Thursday after the electrical applicanes maker's consolidated net profit more-than-doubled to Rs 68.38 crore for the quarter ended March 31, 2021. The company had posted a net profit of Rs 32.23 crore in the year-ago quarter.

Its revenue from operations during January-March 2021 jumped 58.04 per cent YoY to Rs 855.19 crore, V-Guard Industries said in a regulatory filing. The firm's total expenses stood at Rs 759.36 crore, a jump of 50.7 per cent YoY.

For the full financial year 2020-21, V-Guard reported a net profit Rs 201.89 crore, growth of 7.24 per cent as compared with Rs 188.25 crore in 2019-20. Its revenue from operations rose 8.72 per cent YoY to Rs 2,721.23 crore in 2020-21.

Meanwhile, the Kochi-based company said its board in a meeting held on Wednesday recommended a final dividend of 120 per cent, which is Rs 1.20 per equity share of Re 1 each for the financial year 2020-21.

V-Guard Industries Managing Director Mithun K Chittilappilly said, "The business performance has been strong in the fourth quarter, continuing on the growth momentum witnessed in the third quarter. We have been able to achieve a broad-based growth across all our segments, including emerging ones."

On the outlook, Chittilappilly said the country has been hit by a more severe second wave of Covid-19 and as most parts of the country are under lockdown, there will be a significant impact on consumer demand during the current quarter. "We are confident that our business will come back strongly once the lockdowns are lifted," he said.

At 11:04 AM, the stock was trading 3.62 per cent higher at Rs 258.95 as compared to a flat trade in the benchmark S&P BSE Sensex. Around 44.2 lakh shares have changed hands on the NSE and BSE, combined, so far.