V-Guard Industries hits 52-week high on robust Q4 results

The stock surged 15% to Rs 1,134, also its 52-week high on the BSE in early morning trade.

V-Guard Industries has surged 15% to Rs 1,134, also its 52-week high on the BSE in early morning trade, after the company's net profit more than doubled to Rs 42 crore for the quarter ended March 31, 2016 (Q4FY16), on back of strong revenue growth. The company had reported a profit of Rs 20 crore in the  year ago quarter.

Total income from operations for the quarter grew 16% at Rs 513 crore against Rs 442 crore in the corresponding quarter of last fiscal.

Stabilizers, fans and pumps have performed exceptionally well during the quarter under review. Favourable market conditions, lower commodity prices and better sales volume led to significant improvement in margins. Various initiatives taken by the company in controlling costs also helped widen margins.

Earnings before interest, tax, depreciation and amortization (EBITDA) margin improved by 400 basis points at 12% in Q4FY16 against 8% in year ago quarter.

"The business outlook remains positive during the quarter of 2016-17, considering favorable situations. It is planned to launch a mixer grinders in Tamil Nadu and introduce a new product line, gas stoves, in the kitchen appliance category in Kerala during the first quarter," V-Guard Managing Director Mithun K Chittilappilly said.

At 09:28 AM, the stock was up 12% at Rs 1,108 on the BSE as compared to 0.38% rise in S&P BSE Sensex. A combined 159,570 shares changed hands on the counter on the BSE and NSE so far.