V-Guard Industries shares surged as much as 10% on Thursday after the company reported a strong set of first-quarter earnings, with profit and operating performance improving sharply year-on-year.
The stock was trading at Rs 328.5 apiece on NSE around 10.07 am, gaining from its earlier close at Rs 301.95. The benchmark index, Nifty 50, remained muted during the period.
Investors will continue to monitor whether the company can sustain its margin expansion and earnings momentum over the coming quarters.
Revenue And Profit Register Strong Growth
The company reported a consolidated net profit of Rs 130 crore for the June quarter, up 75.7% from Rs 74 crore in the corresponding period last year.
Revenue from operations rose 23.5% year-on-year to Rs 1,811 crore compared with Rs 1,466 crore a year ago, reflecting healthy business growth during the quarter.
The sharp increase in profit outpaced revenue growth, indicating improved operational efficiency and stronger profitability.
V-Guard's earnings before interest, taxes, depreciation, and amortization (Ebitda) increased 55.2% year-on-year to Rs 192 crore from Rs 124 crore in the year-ago period.
The company's Ebitda margin expanded to 10.6% from 8.4% in the same quarter last year, marking an improvement of 220 basis points.
Also Read: V-Guard Q1 Result: Net Profit Rises 76%, Revenue Surges 23%
Shares in Focus
V-Guard shares have been in focus for over a month now as the stock jumped over 9% during the past month.
However, in the long-term, the stock was down more than 15.6% over a year.
Currently trading at a price-to-earnings multiple of 36.17 times, its market cap as at the end of the preceding session stood at Rs 14,391.2 crore.
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