V-GUARD
V-Guard Industries, which makes UPS, inverters, batteries, cables and switchgears and many other consumer goods, posted good set of numbers for Q2FY15. On a 29% (YoY) rise in net sales at Rs.427 crore, the company posted a 36% jump in net profit at Rs.19 crore. EBITDA for the quarter came in at Rs.36crore compared to Rs.27 crore in previous quarter and EBITDA margins improved marginally, from 8.16% to 8.43%.
In terms of segment break-up, the key driver remains electrical and electro-mechanical, which contributed 69% to net sales of Q2 at Rs.298 crore, was up 24%. In terms of EBIT, it was up 33%. The other segment, electronics did much better, showing a 42% rise in revenue and EBIT rose 27%. The company as at 30th Sept’14 had borrowings to the tune of Rs.193 crore. Its equity is at Rs.29.85 crore (face value Rs.10) and reserves is at Rs.330 crore. The company has maintained its guidance of 20% growth in revenue and EBITDA margins of 8.5 to 9% for FY15. Currently, there is an inventory build-up but this is expected to be cleared as the year progresses. Declining cash balance causes some concern.