Dolat Capital: V-Guard Reports Weak Quarter As Expected

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Dolat Capital Report.V-Guard Industries Ltd.’s sales declined 42% at Rs 4 billion, while Ebitda was down 87% at Rs 91 million. Ebitda margins were down 794 basis points YoY at 2.2, while profit after tax was down 93% at Rs 36 million.There was all round decline in revenues in the range of 30-51% across its segments coupled with Ebit margin declines.While there was an Ebit level loss in consumer durables, Ebit was sharply down in electronics too reflecting a bad quarter in stabilizers, on back of likely poor sales of summer products.However, the gross margins have improved gradually over the quarter with June being the best month. During May and June, revenues were 70% and 90% respectively, of the corresponding two months of the previous year, similar to what industry peer Crompton Greaves Consumer Electricals Ltd.did.This weak results has led to trailing twelve months return on equity and return on capital employed have declined to 13.6% and 16.1%, down 500 basis points and 640 basis points YoY respectively..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Dolat Capital: V-Guard Reports Weak Quarter As Expected

V-Guard’s gross margins improved gradually over the quarter with June being the best month, Dolat Capital says.

Choose a plan