V-GUARD INDUSTRIES

V-Guard is a well established brand in stabilisers, PVC insulated cable and LT cables & pumps in South India. It posted a stable set of numbers for Q2FY16. Net sales for the quarter was at Rs.433 crore which is more or less flat YoY. This flat topline was on account of 10% lower average realization in the wires and cables category, which contributes 30% to the sales. This fall in price was due to reduction in copper prices and this affected the overall sales growth. But fall in raw material costs and better realisations in other new products helped recoup.

EBITDA was stable at Rs.36 crore as costs were more or less maintained at Rs.400 crore. The company ended the quarter with a net profit of Rs.23 crore, up 21% (YoY) and H1FY16 net profit of Rs.48 crore was 68% of FY15 net profit.  Mixer grinders, switch gears and electric fans have shown good growth during the quarter under review. Also, Premium model called 'Iris' in 3 liter Instant capacity was launched III Electric Water Heater Category and the product was well accepted in the market. Management stated that expansion work of new cable plant in Coimbatore is progressing fast, and the company expects it to be completed in Q4 of FY17. The company is hoping that Q3 will give much better numbers due to ongoing festive season.