V-Guard is not having too much of a good time on the bourses today. The stock opened weak at Rs.988 to slump down to Rs.950 levels. It has recouped from that but remains down over 3% at Rs.977.

The market is not enthused with its Q4FY15 performance. Though the company’s net revenue for the quarter rose 4.5% (YoY) at Rs.442 crore, it ended the quarter with a 2% fall in net profit at Rs.20 crore. This company has said that this was on account of the higher tax outgo. But what we see in the published results is that in Q4Fy15 and Q4Fy14, tax outgo was at Rs.8 crore. Yes, sequentially it has almost doubled up from Rs.4 crore. The company has stated that its tax-free plants have partly come under the tax net in the reporting year after five years of tax-free operations. Maybe we will see the real impact of this in the coming months.