V-Guard Inds scales record high after robust Q2 outcome

V-Guard Industries rose 4.5% to Rs 194.50 at 09:51 IST on BSE, after net profit jumped 69.99% to Rs 39.20 crore on 14.65% growth in total income to Rs 498.87 crore in Q2 September 2016 over Q2 September 2015.

The result was announced after market hours on Friday, 21 October 2016.

Meanwhile, the S&P BSE Sensex was up 38.83 points or 0.14% at 28,116.01

On BSE, so far 85,000 shares were traded in the counter as against average daily volume of 43,672 shares in the past one quarter. The stock hit a high of Rs 198.75 in intraday trade so far, which is record high for the counter. The stock hit a low of Rs 191.85 so far during the day. The stock had hit a 52-week low of Rs 78.66 on 12 February 2016. The stock had outperformed the market over the past 30 days till 21 October 2016, falling 1.2% compared with 2.42% decline in the Sensex. The scrip had also outperformed the market in past one quarter, gaining 30.03% as against Sensex's 0.99% rise.

The mid-cap company has equity capital of Rs 30.18 crore. Face value per share is Rs 1.

V-Guard Industries said that owing to better market conditions, products like Electric Water Heaters, Pumps, Fan and Digital UPS have done extremely well in Q2 September 2016. Onam season was positive with categories related to festive season doing well, the company said. Reduction in cost of goods sold is due to reduced input cost and continued cost savings from supply chain initiatives, it added.

Commenting on the company's performance, Mithun. K. Chittilappilly, Managing Director, V-Guard Industries said that the company will be expanding to the north markets and expand its range in the Kitchen and home appliances range to cater to a wider audience. The company expects to perform reasonably well in the water heater segment considering upcoming season, Chittilappilly said.

V-Guard Industries makes consumer electrical and electronics products. The company's product range includes Voltage Stabilizer, Digital UPS, Inverter and Inverter Batteries, Electric Water Heaters, Solar Water Heaters, Domestic Pumps, Agricultural Pumps, Industrial Motors, Domestic Switch Gears, Distribution Boards, Wiring Cables, Industrial Cables, Induction Cooktops, Mixer Grinders and Fans.

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