Consumer Durables Segment Grew Well During Q3 2019-20: V-Guard

• V-Guard has posted a 30 per cent increase in profit-after-tax (consolidated) for Q3 2019-20
• The company stated that low volatility in commodity prices, combined with cost effectiveness measures pricing actions early in the year helped improve margins

V-Gurad has announced the unaudited financial results for the quarter ended 31 December 2019. Company’s consolidated net revenue from operations for the quarter ended 31 December 2019 was Rs 631.89 crores. These figures represent an increase of five per cent over previous year (Rs 601.31 crores).

“Slowness in consumer demand continued during Q3 FY 20, which impacted our overall top-line growth. Under these circumstances, we are making good progress in the non-South markets and new categories. Margin and working capital management remained robust. We are hopeful that we will be able to get back to higher growths in the coming quarters, once the macroeconomic conditions improve,” said Mithun. K. Chittilappilly, MD, V-Guard Industries Ltd.

Rs 44.24 crores profit after tax

V-Guard’s consolidated profit after tax for the quarter ended 31 December 2019 was Rs 44.24 crores. This also represents an increase of 29.7 per cent over the previous year. V-Guard’s consolidated profit after tax for the same quarter last year was Rs 34.10 crores.

The company had entered several new categories starting 2018. Two of these categories included a smart water heater named Verano and a smart fan equipped with LED lamps named Imagina.

Chittilappilly also steered V-Guard into a new branding identity. The company chose a kangaroo as its logo and mascot and its advertising sweep targeted upmarket areas like airports back then.

“They say life begins at 40 and at V-Guard it certainly does. And to live that, we have decided to re-invent ourselves completely. We are not just thinking up the next innovation. We are constantly seeking to understand human life and its relationship with tools and appliances. And then to evolve a seamless experience with thoughtfully engineered products in our quest to enriching consumer lives,” Chittilappilly had said earlier.

Non-South markets, as V-Guard informed, contributed 38 per cent of turnover for the quarter. This represents a jump of 37 per cent over the corresponding quarter of the previous year.