V-Guard Q3 net jumps 87.98%

V-Guard Industries, one of the leading manufacturers of electronic and electrical equipment reported a sales growth of 36.79% for the third quarter of the current financial year. During the quarter net revenue of the company increased from Rs 477.32 million to Rs 652.94 million as compared to the same period of the pervious year.

The net profit of the company has grown by 87.98% during the quarter. The profit after tax for the third quarter of the current financial year is Rs 20.04 million as against Rs 10.66 million during the corresponding quarter of the previous year.

For the first nine months of the current financial year the company reported net revenue of Rs 1,972.63 million registering an increase of 29.56 % over the corresponding previous period`s revenue of Rs 1,522.53 million. The Profit after tax of the company for the first nine months is Rs 338.32 million as against Rs 92.64 million during the corresponding period of the previous year. Non recurring income of Rs 227.79 million reported during the period was the reason for the sharp increase in PAT.

The company is the largest manufacturer of voltage stabilizers in India. The other products which company deals are insulated cables, pumps& motors, solar & electric water heaters, electric fans and UPS. During the period under report the company had opened eight new branches, making the total branch network in India to 24 including factories.

The company came out with initial public offer during February 2008 and raised Rs 656 million by issuing 8 million equity shares of Rs 10 each at a premium of Rs 72 a share to finance the ongoing expansion projects. The equity shares of the company are listed both in BSE & NSE.

The new factories of the company namely Building cable unit at Uttaranchal and LT Power cable manufacturing unit at Coimbatore are fast progressing. According to Kochouseph Chittilappilly, promoter and managing director, both these factories are expected to commence commercial production during the third quarter of the next financial year.

The other projects, pilot production centers for water heaters and fans at Himachal Pradesh and for pump at Coimbatore, distribution centers at Bangalore, Hubli and Vijayawada are also expected to complete by that time.