V-Guard Industries (532953) Q4 05/06 earnings summary

Executive summary

• Gross turnover rose 26% to Rs 184.07 crore in FY2005-06; profit after tax increased to Rs 920.48 lakh from Rs 551.57 lakh.

• Operations expanded with a Kerala launch of electric fans, new branches, and ongoing product development; FY2006-07 turnover was projected at Rs 220 crore.

Financial highlights

• Gross sales were Rs 18,407.71 lakh vs Rs 14,543.48 lakh; net sales were Rs 17,522.36 lakh vs Rs 13,852.76 lakh.

• Operating profit before depreciation, interest and tax was Rs 1,938.34 lakh vs Rs 1,329.76 lakh; PBT was Rs 1,425.86 lakh vs Rs 868.19 lakh.

• PAT was Rs 920.48 lakh vs Rs 551.57 lakh; tax provisions included Rs 443.69 lakh for tax including FBT and Rs 61.69 lakh for deferred tax.

Outlook and guidance

• FY2006-07 turnover was projected at Rs 220 crore; management expressed confidence in continued improvement in performance.

• Planned expansion included branches in Goa, Maharashtra, Gujarat, Uttar Pradesh and Haryana, in addition to new branches opened in Hubli and Bhubaneswar.

• Product pipeline included 1–3 KVA online UPS, solar water heaters, mixer grinders and security alarm systems; wired alarm design was complete and wireless development ongoing.