Result of v guard

The consumer durables industry had a subdued performance in Q3 earnings, largely due to a slowdown in demand in the retail sector. However, V-Guard Industries (VIL) stood out with strong results despite the challenging market conditions.

VIL demonstrated impressive revenue growth of 19 percent year on year in Q3 FY24, outperforming its competitors. Adjusting for the Sunflame acquisition, the business still showed solid growth at 11 percent year on year. Gross margin improvement was supported by lower input costs and increased in-house manufacturing. However, the benefits at the operating level were offset by a significant rise in advertising expenses during the quarter.

The Electronics segment, which includes stabilisers, UPS, etc., saw a notable revenue increase of 17 percent year on year, driven by strong demand for stabilisers, inverters, and batteries. In particular, inverters and batteries consistently outperformed the market. V-Guard has made substantial investments in manufacturing units for inverters and batteries, focusing on scaling up production volumes and enhancing margins.

The Electricals segment, the largest segment contributing 41 percent to the top line, grew by 8 percent year on year in Q3. While there was strong demand from the industrial segment for cables, the consumer off-take of wires was affected by various factors such as inflation, weak rural demand, and fluctuating copper prices. Switch-gears performed well, supported by positive demand trends in retail estate and housing sectors.