V-GUARD INDUSTRIES

V-Guard Industries, which makes UPS, inverters, batteries, cables and switchgears and many other consumer goods, posted good set of numbers for Q3FY16. This was mainly on the back of lower costs and a decline in interest outgo despite a muted growth in topline. Its net sales for the quarter rose by a mere 5% (YoY) at Rs.414 crore but net profit jumped up 133% at Rs.21 crore. This was on account of the 72% drop in interest outgo and costs, which came down to 92.5% of total income v/s 96% in previous Q3. EBITDA rose 60% and margins were up from 5.8% to 8.8%.

Looking ahead, the company has said that while the impact from the spending environment and copper prices means that FY16 topline growth may be moderated to about 5%, it expects EBITDA margin to track at almost 9%, a gain of 100 bps over last year. Its 9M PAT is up 37%, almost in line with full year PAT of FY15, providing strong profit momentum. Its total debt currently stands at Rs.24 crore, down from Rs.99.5 crore in previous year.