V-Guard Q4 profit declines by a half to Rs32.23cr

Full year profit up 12 pc to Rs188.25cr; no final dividend

KOCHI: The leading consumer electrical and electronics company, V-Guard Industries, has reported a decline of 47.45 per cent in its consolidated net profit for the fourth quarter (Q4) ending March 31, 2020 to Rs32.23 crore compared with Rs61.39 crore the company logged in for the same quarter last year.

The consolidated net revenue from operations for the quarter under review was Rs541.14 crore; a decline of 27.45 per cent  compared with the corresponding period of previous year at Rs.745.78 crore.The company said the nation-wide lockdown to combat the COVID-19 pandemic had a collateral impact in terms of revenue loss and the attendant profit impact.

In view of interim dividend paid during the year under review, the board has not recommended any final dividend.

The consolidated net profit of the company for the full year ended March 31, 2020 was Rs188.25 crore representing an increase of 12 per cent compared with that of the previous year at Rs168 crore. The consolidated net revenue from operations for the year ended March 31, 2020 was Rs2,502.94 crore, a  decline of 3.5 per cent over previous year at Rs2,594 crore.

Commenting on the company’s performance, Mithun K Chittilappilly, managing director, V-Guard Industries noted that the financial year 2020 has been a very challenging year.

He said the macroeconomic slowdown during the first nine months presented a significant challenge, adding that this was compounded by the COVID-19 pandemic in Q4.

“We expect the effect of the pandemic to last for a few more months, during which period, the consumer demand for discretionary items will remain subdued. However, the fundamentals of the business remain strong; we have significantly improved our gross margins and we continue to invest in innovation and business capabilities to achieve our long-term ambitions” Chittilappilly added.



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