V-Guard Industries Q3 profit up 30 pc to Rs 44 cr

Consumer electricals maker V-Guard Industries on Friday reported 29.77 per cent rise in net profit at Rs 44.24 crore for December quarter 2019-20, helped by improvement in gross margins.

The company had posted a profit of Rs 34.09 crore in October-December period a year ago, V-Guard said in a BSE filing.

Revenue from operations was up 5.08 per cent to Rs 631.88 crore during the quarter under review as against Rs 601.30 crore in the year-ago period.

"Gross margins improved across all segments. Low volatility in commodity prices, combined with cost effectiveness measures pricing actions early in the year helped improved margins," said V-Guard in a post earning statement.

Total expenses were at Rs 579.27 crore as against Rs 561.93 crore, up 3.08 per cent.

Revenue from the electronics segment was at Rs 153.78 crore and from electricals division at Rs 276.14 crore.

Consumer durables segment contributed a revenue of Rs 201.95 crore.

"Subdued demand conditions impacted top-line growth during the quarter. The Consumer Durables segment grew well, but other segments were impacted more by the overall slowdown," the company said.

Commenting on the outlook, company's MD Mithun K Chittilappilly said:"We are hopeful that we will be able to get back to higher growths in the coming quarters, once the macroeconomic conditions improve."