India, 30th Jan, 2017:
India’s leading consumer electrical and electronics company, V-Guard Industries Ltd., announced its results for the third quarter that ended on December 31, 2016 of FY 16-17.
· Net Revenue from operations for the Third Quarter, ending December 31, 2016-17 fiscal, was Rs.459.58 crores; an increase of 10.40% over corresponding period of last financial year (Rs.416.28 crores)
· Profit After Tax for the Quarter, ending December 31, 2016-17 fiscal, was Rs. 27.96 crores; showing an increase of 30% over corresponding period of last financial year (Rs. 21.48 crores)
· Pumps has driven growth for the quarter under review along with Fans and Solar Water Heaters.
· The Board commemorating the 40th foundation day of the Company, recommended bonus issue of 2 equity shares of Re. 1/- each for every 5 shares held, subject to the approval of the members of the Company, by capitalizing free reserves of the Company.
Business Outlook:
Commenting on the company’s performance, Mr. Mithun. K. Chittilappilly, Managing Director, V-Guard Industries Ltd said “We were able to perform reasonably well in a market condition which was affected by various economic decisions. Demonetization had some impact on some product segment and sales growth of some of the products had come down from earlier quarters. We have proactively introduced various facilities such as arranging finance through NBFC and installing card machines, cash discount facilities to channel partners etc. Sales in Tamil Nadu Region was affected due to the socioeconomic situation prevalent in the State and because of cyclone affecting many parts of Chennai and suburban areas.
“The business outlook remains positive considering upcoming summer season. We would look at expanding to newer cities, launch newer products that resonate with the younger generation.”
Key developments
· A new manufacturing unit at Sikkim is being set up with an investment outlay of Rs. 12.50 crores (excluding land and building) with built up area of 60,000 sq. ft. for increasing the capacity of Stabilizer and the unit is expected to commence commercial production in March, 2017.
· Manufacturing unit for Electric Water Heater at Sikkim with an investment of Rs. 25 crores (excluding land) with built up area of 80,000 sq.ft. is being set up and would commence commercial production in March, 2017.