V-Guard Q4 Results: Net profit falls 41% YoY to Rs 52.73 crore on loss in consumer durables

Electronic products manufacturer V-Guard Industries reported a 41% fall in its fourth-quarter profit on Tuesday, dragged by a loss in the consumer durables segment.

The Kochi-based company's consolidated net profit fell to Rs 52.73 crore in the quarter ended March 31, from Rs 89.7 crore a year ago.

The company's revenue from operations rose more than 7% to Rs 1140 crore, as revenue from its new Sunflame segment offset muted growth in other segments.

Pre-tax profit from its consumer durables segment swung to a loss of Rs 1.13 crore from Rs 4.95 crore profit a year ago. Revenue from the segment declined 3.36% to Rs 286 crore.

Pre-tax profit from its electronics segment fell almost 25%, while its electricals segment fell almost 14% in the quarter.

V-Guard announced the acquisition of kitchen appliances-maker, Sunflame Enterprises last December for Rs 660 crore. Subsequently, the company reported a pre-tax profit from the segment at nearly Rs 8crore.

Total expenses increased 11.3% to Rs 1071 crore. Earlier in the month bigger rival, Havells India Ltd posted a surge in its Q4 profit, backed by strong air conditioner sales.

Separately, the V-Guard recommended a final dividend of Rs 1.3 per share. The company's shares fell 3.14% after the results were announced.