V-guard Industries’ sales increased by a mere ~8% yoy to Rs658.6cr from Rs610.4cr in Q4FY17. Operating profit declined by 33.3% yoy to Rs37.9cr from Rs56.8cr in Q4FY17, while EBITDA margin declined by 356bps from 9.3% in Q4FY17 to 5.8% in Q4FY18. Net profit during the quarter also de-grew by 29.5% yoy to Rs27.6cr vs Rs39.1cr in Q4FY17.
Other expenses increased sharply by 64% yoy, while employee cost remained flattish yoy.
Increase in sales was driven by 18.7% and 7.7% yoy growth in consumer durables and electronics respectively, while electricals business’ sales remain flat.
At the EBIT level, performance across segments was subdued. We assume that unfavorable weather, higher inventories in the channels and tepid demand led to poor numbers. Consumer durables segment reported an EBIT level loss of Rs3.1cr, while Electronics’ EBIT declined by 36.8% yoy to Rs14.5cr. Electricals declined by 10.1% yoy to Rs23.6cr.
V-Guard Industries Ltd ended at Rs233.05, up by 3 points or 1.3% from its previous closing of Rs230.05 on the BSE. The scrip opened at Rs234 and touched a high and low of Rs236.50 and Rs227.25 respectively. A total of 13,01,011 (NSE+BSE) shares were traded on the counter. The stock traded below its 50 DMA.
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