V-Guard Industries surges as Q3 profit more than double

The stock surged 10% to Rs 981 after the company posted net profit of Rs 21 crore in Q3FY16 against Rs 9 crore in the year ago quarter.

V-Guard Industries has surged 10% to Rs 981 on the BSE in early morning trade after the company reported more than doubled net profit at Rs 21.48 crore for the third quarter ended December 31, 2015 (Q3FY16). The company had profit of Rs 9.23 crore in the same quarter year ago.

Net revenue from operations for the quarter were Rs 416 crore; an increase of 5.3% over the corresponding quarter of last fiscal.

“Efficiency in operations and better working capital management have supported in improving the margin,” V-Guard Industries said in a release.

Earnings before interest, tax, depreciation and amortization (EBITDA) margin improved by nearly 300 basis points at 8.31% in Q3FY16 against 5.48% in year ago quarter.

Commenting on the company’s performance, Mr. Mithun Chittilappily, managing director, V-Guard Industries said, the business outlook remains positive; we continue to see an enhanced demand for certain categories of our products, considering the forthcoming summer season.

At 09:46 AM, the stock was up 6% at Rs 943 on the BSE as compared to 0.08% decline in S&P BSE Sensex. A combined 13,357 shares changed hands on the counter on the BSE and NSE so far.