V-Guard's Revenue for Ql FY 2020-21 lower by 42%

India's leading consumer electrical and electronics company, V -Guard Industries Ltd., announced its unaudited financial results for the quarter ended June 30, 2020.

Ql FY 21 highlights:

- Consolidated Net Revenue from operations for the quarter ended June 30, 2020 was Rs. 408 crores; a decline of 42% over corresponding period of previous year (Rs.706.65 crores)

- Consolidated Profit After Tax for the quarter ended June 30, 2020 was Rs. 3.64 crores; a decline of 93% over corresponding period of previous year (Rs.53.03 crores).

- Owing to nation-wide lockdown in response to the COVID-19 pandemic, revenue for the month of April 2020 was near zero. Operations resumed in phases from first week of May with complete adherence to the COVID-19 protocols. During May and June, revenues were 70% and 90% respectively, of the corresponding two months of the previous year, as more markets opened up.

- The COVID-19 situation also resulted in lower capacity utilisation at the factories and an unfavourable product mix which impacted gross margin for the quarter.

- The Company has not resorted to any layoffs or pay cuts; cost containment measures which have been taken will be continued in the coming quarters as well.

- Cashflow from operations continue to be strong due to prudent working capital management.

Business Outlook:

Commenting on the Company's performance, Mr. Mithun. K. Chittilappilly, Managing Director, V-Guard Industries Ltd said "Our business has been very resilient in facing these extremely challenging times. While May-June has shown some recovery, we remain cautious as localized lockdowns may cause market closures in different parts of the country from time to time. We expect the effect of the COVID-19 pandemic to last for a few more months, during which consumer demand for discretionary items will remain subdued. We are taking all measures to ensure that the business responds nimbly to the evolving situation."

Shares of V-GUARD INDUSTRIES LTD. was last trading in BSE at Rs.168.9 as compared to the previous close of Rs. 170.7. The total number of shares traded during the day was 9988 in over 291 trades.

The stock hit an intraday high of Rs. 170.8 and intraday low of 168.35. The net turnover during the day was Rs. 1690071.

Source : Equity Bulls

Keywords