V-Guard posts 97.87% growth in net profit

The company has registered net profit of Rs 3742.30 lakhs during the financial year ended March, 31, 2008 as compared to Rs. 1823.93 recorded in the corresponding period a year ago.

The board of directors took on record the financial results for the period 2007-08 at its meeting in Kochi on 19th May 2008. The profit before tax for the current financial year is Rs 5243.43 lakh as against 2649.90 lakh

The company has earned non-recurring profit of Rs.2970.74 lakhs during the year 2007-08 which has contributed to this sharp increase in the profit before tax.

The Board of Directors has recommended a final dividend of 25% for the FY 2007-08.

The company, which is the largest manufacturer of voltage stabilizers in India, has reported a sales growth of 26.16% during the year ended 31st March 2008, compared to the last financial year ended 31st March 2007. The gross sale of the Company has increased from Rs.22, 922.04 lakhs to Rs.28, 917.94 lakhs as compared to the pervious fiscal.

"V-Guard, which is a leader in electrical and electronic equipments, has made rapid growth and its sterling performance in the current fiscal displays its exemplary growth", says Mr. Kocouseph Chittilappilly, Promoter and Managing Director of the Company.

Besides stabilizers, the products in which company deals are insulated cables, pumps & motors, solar & electric water heaters, electric Fans and UPS.

During the financial year under report, the company had opened eleven new branches, making the total branch network in India to 24 including factories.

The Company came out with Initial Public Offer during February 08 and raised Rs.6560 lakhs by issuing 80 lakhs equity shares of Rs.10 each at a premium of Rs.72 per equity share to finance the ongoing expansion projects. The equity shares of the Company are listed both in Bombay Stock Exchange and National Stock Exchange.

The new Factories of the Company namely Building cable unit at Uttaranchal and L.T Power cable manufacturing unit at Coimbatore are fast progressing. According to Mr. Kochouseph Chittilappilly, Promoter and Managing Director, both these factories are expected to commence commercial production during the third quarter of the current financial year.

The Other projects, Pilot Production Centers for Water Heaters and Fans at Himachal Pradesh and for Pump at Coimbatore, Distribution Centers at Bangalore, Hubli and Vijayawada are also expected to complete by that time.

About V-Gourd Industries Ltd
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