V-Guard Q2 Profit Jumps 70%, Sales Up 14%

Q2 Profit Jumps

India: V-Guard reported a strong performance Q2 profit jumps, with sales rising nearly 14% to Rs 495 crores (USD 59.0 million) and profit after tax increasing about 70% to Rs 39.2 crores (USD 4.7 million). Growth was driven primarily by its large product categories, with the water heater segment recording approximately 25% growth, while kitchen appliances in the small appliances category surged nearly 50% during the quarter. Margins expanded across all categories, with the highest margins currently coming from the water heater and stabiliser businesses.

The company has entered two relatively new categories kitchen appliances and switchgear and expects these segments to contribute around Rs 100 crores (USD 11.9 million) in the current financial year, with each contributing about Rs 50 crores (USD 6.0 million). Within kitchen appliances, it also launched a new gas cooktop subcategory during Q2 for the Onam season. The switchgear segment has recorded 35–40% growth in the first six months. Looking ahead, the company expects revenue to grow at a CAGR of 15% in the current and next financial years.

Source: Economic Times