V-Guard Q3 Results: Margin expands, management optimistic on summer demand

V-Guard Industries Ltd reported a mixed set of earnings for the December quarter, with profit declining year-on-year due to a one-time labour code impact, even as revenue and operating performance improved.

The consumer electricals and electronics maker posted a consolidated net profit of ₹57 crore for Q3, down 5.3% from ₹60.2 crore in the year-ago period. The company said profit was impacted by an exceptional charge of ₹22.11 crore following a reassessment of employee benefit obligations under the new labour codes. Excluding this one-time impact, underlying profit after tax grew 22.3%.

Revenue for the quarter rose 10.6% year-on-year to ₹1,403.5 crore from ₹1,268.7 crore, driven primarily by strong volume growth in the electrical segment.

EBITDA increased 18.2% year-on-year to ₹123.2 crore from ₹104.2 crore, while EBITDA margin expanded to 8.8% from 8.2%, reflecting operating leverage despite commodity price inflation.

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Commenting on the performance, Managing Director Mithun K. Chittilappilly said the business delivered double-digit growth in the third quarter, led by the electrical segment, and added that margins remained resilient. He said the company is optimistic heading into the upcoming summer season and expects to deliver strong results.

Shares of V-Guard Industries Ltd hit an intraday low of ₹313.15 on the NSE before recovering. As of 2:51 pm, the stock was trading at ₹318.05, up 0.49%.