V-Guard Industries Ltd today posted an 18.6% increase in consolidated revenues and 48.3% jump in net profits for the quarter ended December 31, 2023 compared to the same period last fiscal.
The company’s total revenues grew to Rs 1,165 crores in Q3 FY2024 from Rs 982 crores in Q3 FY2023. Net profit rose significantly to Rs 58 crores against Rs 39 crores in the corresponding quarter last year.
In the nine months ended December 2023, V-Guard clocked 17.6% revenue growth at Rs 3,514 crores compared to Rs 2,988 crores in 9M FY2023. Net profit for this period registered a 33.1% increase to Rs 181 crores from Rs 136 crores last year.
Segment-wise, in Q3, the electronics division delivered a robust 17% revenue growth while electricals division grew by 8%. Consumer durables also exhibited encouraging performance with 11% higher revenues over last year.
Geographically, revenues from South India, comprising 54% of sales, rose 11% and non-South markets grew around the same levels year-on-year. This indicates the brand's pan-India appeal and reach.
Operationally, gross margins showed a healthy expansion to 34% in Q3 FY2024 from 30% last year on account of favorable product mix and price hikes.
Commenting on the results, Mr. Mithun K Chittilappilly, Managing Director of V-Guard Industries said, “While consumer sentiment was muted earlier, demand revived towards the quarter-end across segments. With summer approaching and early signs of positivity, we aim to sustain growth momentum and market share gains.”
On the outlook, he added “We continue investing behind brands, innovation and technology to elevate consumer experience. Our new capacities in wires & cables and pumps will further bolster volumes and margins going forward."
In the past nine months, V-Guard has shown consistency in delivering double-digit profitable growth through focus on portfolio expansion, cost optimization, distribution enhancement and prudent financial management.
With strong results in 2022-23 so far and positive business environment, the company remains confident of closing the fiscal on a high note while creating sustainable value for all stakeholders.