V-GUARD INDUSTRIES
The company, which makes UPS, inverters, batteries, cables and switchgears and many other consumer goods, has posted a good set of numbers for Q3FY14. It ended the quarter with a 14% (YoY) growth in net profit at Rs.17.53 crore on a marginal 1% rise in net revenue at Rs.353 crore. The company has managed to keep a tight leash on the operating costs, especially the selling and distribution expenses. Finance cost and taxation have risen marginally. In terms of segmental break-up, robust sales was reported in electric and solar water heaters while sales of digital UPS and pumps reported a decline in sales due to poor demand.
The company enjoys a 51% market share in the stabiliser market and it recently upped its production capacity of solar water heaters to 90,000 units pa at cost of Rs.18 crore. A new model of electric water heater, Pebble, was recently launched in the premium category in the southern region; it will be taken to other states in FY15. The company is going all out to shake off its strong only-South India presence and becoming more pan-India, which can be seen by the higher advertising spend. Its reserves as at 31st Dec’14 stood at Rs.231 crore.