V-GUARD INDUSTRIES
V-Guard Industries, which makes UPS, inverters, batteries, cables and switchgears and many other consumer goods, has posted a good set of numbers for Q4FY14. It ended the quarter with a 13% (YoY) rise in net sales at Rs.419 crore and a net profit of Rs.20 crore, up by 122%. This big spurt in the bottom line was mainly on account of efficient cost management as its total operating costs as a percentage of net sales for the quarter came down to 93% from 97% in previous Q4. This is despite the four times rise in tax outgo. It ended FY14 with a 11% rise in net profit at Rs.70 crore.
In terms of segment break-up, the key driver remains electrical and electro-mechanical, which contributed 71% to net sales of Q4 at Rs.298 crore, was up 24%. In terms of EBIT, it was up over 3 times at Rs.18 crore. The other segment, electronics, recorded a 9% drop in net sales but its EBIT rose 33%. The company as at 31st March 2014 is sitting on a debt of around Rs.100 crore. Its equity is at Rs.29.85 crore (face value Rs.10) and reserves is at Rs.288 crore. Its cash balance has come down sharply for FY14 from Rs.15 crore in FY13 to Rs.3 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.