V-GUARD INDUSTRIES

V-Guard Industries makes consumer electrical and electronics products. The company's product range includes voltage stabilizer, digital UPS, inverter and inverter batteries, electric water heaters, solar water heaters, domestic pumps, agricultural pumps, industrial motors, domestic switch gears, distribution boards, wiring cables, industrial cables, induction cooktops, mixer grinders and fans.

The company did well for Q3FY17. Net Revenue was up 10% (YoY) at Rs.460 crore and net profit showed a 30% jump at Rs.28 crore. The ‘Electrical and electro-mechanical segment did well – topline showed a 10% increase and EBIT was up 44%. On the other hand, Electronics segment revenue rose 8% but EBIT fell 25%.

What also helped the bottomline was the 83% increase in other income and 67% fall in interest cost.

The company’s net profit for 9MFY17 at Rs.110 crore v.s FY16 net profit of Rs.112 crore holds the promise of a very good ending this fiscal. Equity is at Rs.30.22 crore and annualized EPS is at Rs.5 (FV at Re1).

The company has declared a bonus – 2 shares for every five held and this will increase the capital to Rs.42 crore. Reserve stands at Rs.441 crore and it has capitalized Rs.12 crore for the bonus.