V-Guard Industries Ltd. said it missed quarterly growth estimates as sales of its electricals business fell due to consumption slowdown and late onset of summer.
“We're below expectations since we've grown 12 percent (year-on-year) in revenue in the fourth quarter against 16-17 percent estimated,” Managing Director Mithun Chittilappilly told BloombergQuint.
Revenue stood at Rs 740 crore in the January-March period. Its profit, however, more than doubled to Rs 59.2 crore.
V-Guard's electronic segment, especially voltage stabiliser and inverter/battery, didn't perform well, he said. “Apart from the southern region, all other markets remained subdued because of delayed onset of summer. So, air conditioner sales were muted.” The inverter and battery sales were affected by fewer power cuts during the election period, he said.
The company's operating profit jumped more than twofold to Rs 78 crore in the three months through March, while operating margin expanded 520 basis points to 10.5 percent.
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