V-Guard Industries net profit rises 54 pc in Q1

Consumer electricals and electronics company V-Guard has reported consolidated profit after tax for the quarter ended June 30 at Rs 53 crore, up by 54 per cent from Rs 34.5 crore in the same quarter last year.

The company's net revenue from operations was Rs 707 crore with an increase of 10 per cent. Non-South markets contributed 46 per cent of net revenue for the quarter. Electronics and consumer durables segments grew well during the quarter under review, the company said.

"The electricals segment was impacted by trade destocking of wires category caused by downward trend in copper prices. We are making satisfying progress with our new categories and new markets," said V-Guard Industries Managing Director Mithun K Chittilappilly.

"We continue to invest towards enhancing organisational capabilities and improving our competitiveness in the market, and expect to sustain the growth momentum in the coming quarters," he added.

As household consumption market is poised to grow at a significant pace going forward, the company envisages adding 3,000 to 5,000 retailers across the country every year over the next five years with higher addition in the non-South region.

V-Guard follows an asset light model, outsourcing nearly 58 per cent of its products from a range of vendors. It has tie-ups with small scale industries and self-help groups spread across southern India. The blended manufacturing policy helps optimise capital expenditure and working capital requirements.