V Guard reported marginal fall of -0.04% in top line sales for the Sep-20 quarter at Rs623.01cr. The operating profits for the quarter ended Sep-20 was down 5.69% at Rs67.67cr while net profits were down 12.14% at Rs51.62cr.
This had an overall impact on the margins of V-Guard. For the Sep-20 quarter, the operating profit margins or OPM was down 65 bps at 10.86% on the back of higher costs. However, the net profit margins or NPM for the quarter was down by nearly 115 bps at 8.29%, due to higher post appropriation costs.
Financial highlights for Sep-20 compared yoy and sequentially
|
Particulars |
Sep-20 Quarter |
Growth (yoy) |
Growth (qoq) |
|
Total Revenues |
Rs623.01cr |
-0.04% |
+52.70% |
|
Operating Profit |
Rs67.67cr |
-5.69% |
Not Applicable |
|
Net Profits |
Rs51.62cr |
-12.14% |
Not Applicable |
|
Key Ratios |
Sep-20 Quarter |
Sep-19 Quarter |
Jun-20 Quarter |
|
Diluted EPS |
Rs1.19 |
Rs1.35 |
Rs0.09 |
|
Operating Margins |
10.86% |
11.51% |
0.40% |
|
Net Profit Margin |
8.29% |
9.43% |
0.89% |
Key takeaways from the Sep-20 quarter results
-
The company has seen its sales rebound sharply from the lows of June quarter and the profits and operating margins have also come back to the pre-COVID levels. This should allow the company time to play the growth from here on.
-
The cash flow from operating activities was sharply higher in the first half of the fiscal on account of lower working capital costs during the Jun-20 quarter period. The company being in the electrical equipment space, got a hit from weak construction demand.
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