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Electrical goods manufacturer V-Guard Industries Ltd on Thursday reported a 27.13 per cent decline in consolidated net profit at Rs 39.28 crore for the December quarter as high cost inventory impacted margins.
It had posted a net profit of Rs 53.91 crore in the year-ago period, the company said in a regulatory filing.
Its revenue from operations was at Rs 980.83 crore, up 1.37 per cent during the period under review as against Rs 967.56 crore in the corresponding period a year ago.
The company’s total expenses were up 4.25 per cent at Rs 934.02 crore in the third quarter of FY23.
Revenue from the electronics segment was 4.27 per cent down at Rs 191.35 crore.
However, revenue from the electrical segment was 1.53 per cent higher at Rs 435.81 crore.
Its revenue from the consumer durables segment rose 4.50 per cent to Rs 353.67 crore over Rs 338.42 crore in the year-ago period.
“Turnover growth for Q3 was 1.4 per cent Y-o-Y (Year-on-Year) due to a high base, while the CAGR for the past three years is at 15.8 per cent. The durables segment continues to grow well,” Managing Director M K Chittilappilly said.
The company is making a sustained progress in growing the business in the non-south markets.
“Our A&P spends have returned to normal levels after two years of lower spending during Covid. Margins are still lower than pre-Covid levels especially in Durables, as were holding more than normal inventories at a higher cost. With inventory levels having come down, we should see margins reverting to pre-Covid levels in the next 1-2 quarters,” he said.
Shares of V-Guard Industries Ltd on Thursday settled 1.14 per cent higher at Rs 248.55 on the BSE.
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