V-Guard gains after Q4 PAT rises 32% YoY to Rs 224 cr

V-Guard Industries advanced 1.96% to Rs 223.50 in a weak market after the company reported a 32.6% rise in standalone net profit to Rs 90.6 crore on a 23.7% increase in net revenue to Rs 1,050.27 crore in Q4 FY22 over Q4 FY21.

On the segmental front, revenue from Electricals was Rs 507.26 crore (up 32.6% YoY), revenue from Consumer Durables was Rs 295.88 crore (up 32.3% YoY) and revenue from Electronics was Rs 247.13 crore (up 1.8% YoY) during the period under review.

Cost of goods sold jumped 28.5% to Rs 748.37 crore in Q4 FY22 from Rs 582.24 crore in Q4 FY21. EBITDA improved marginally by 0.8% year on year to Rs 110.82 crore in Q4 FY22.

On the margins front, gross margin declined to 28.7% in the quarter ended 31 March 2022 as against 31.4% in the quarter ended 31 March 2021 while EBITDA margin fell to 10.6% in Q4 FY22 from 12.9% in Q4 FY21.

On full year basis, the company reported 14% rise in net profit to Rs 226.8 crore on a 28.7% increase in net sales to Rs 3,474.66 crore in the financial year ended 31 March 2022 over the financial year ended 31 March 2021.

Mithun. K. Chittilappilly, managing director, V-Guard Industries, said, "The business has shown a very good performance during the quarter, with both South and non-South regions doing well. We were able to overcome supply chain challenges we faced in the earlier waves of Covid. Electrical and Durables categories have shown strong growth. Summer related products recovered from a slow start to the quarter to grow well in March. Commodity prices remain elevated in the context of on-going uncertainties at global level. We have continued to take pricing actions and some more actions will follow in the coming months".

Meanwhile, the company's board recommended a dividend of Rs 1.30 per equity share for the financial year ended 31 March 2022.

V-Guard Industries makes consumer electrical and electronics products. The company's product range includes voltage stabilizers, inverter, electric & solar water heaters, fans, kitchen appliances, pumps, wires & cables, domestic switch gears, air coolers, etc.

Meanwhile, the S&P BSE Sensex tumbled 1,266.85 points or 2.34% to 52,941.68 amid weak global cues.

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