V-Guard Industries (532953) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 consolidated revenue reached ₹1,268.65 crore, up 8.9% year-over-year, with moderate overall consumer demand and Electronics segment leading growth at 28%.

• Non-South markets grew 15.8% YoY, now contributing 48.4% of total revenue; South market grew 3.7% YoY.

• Gross margin improved to 36.2% from 33.7% last year, driven by higher in-house manufacturing and premiumization, but higher A&P and employee costs impacted EBITDA margin.

• Net profit for Q3 FY25 was ₹60.22 crore, up from ₹58.24 crore in Q3 FY24; PAT margin at 4.7%.

• Sunflame debt repayment is on track for completion by year-end.

Financial highlights

• Q3 FY25 EBITDA was ₹104.14 crore, up 2.5% YoY; EBITDA margin at 8.2% (down 50 bps YoY) due to higher A&P and employee costs.

• Gross margin for Q3 FY25 at 36.2% (up 250 bps YoY); 9M FY25 revenue: ₹4,039.74 crore, up 15.0% YoY.

• Working capital remained steady, supporting strong cash flow; net cash position improved to ₹27.72 crore as of December 2024.

• EPS for Q3 FY25 was ₹1.38 (basic); for 9M FY25: ₹5.09.

• Unallocated corporate expenses normalized at ₹33-36 crore per quarter.

Outlook and guidance

• Performance for the nine months is in line with the annual plan; robust performance expected in the upcoming summer season.

• Targeting 10% EBITDA margin in the medium term, with incremental improvements expected as new plants mature.

• Management continues to focus on segmental growth, operational efficiency, and working capital.

• Further margin improvement expected in consumer durables as new manufacturing facilities ramp up.