V-Guard Industries (532953) Q4 08/09 earnings summary

Executive summary

• FY09 net revenue rose 13.9% to Rs.31,677.67 lakh; PAT excluding the prior-year after-tax one-time gain increased 18.46% to Rs.1,734.65 lakh.

• Performance advanced across stabilizers, electrical and solar water heaters, pumps, cables and fans despite a difficult economic backdrop; Digital Home UPS was added to the portfolio.

Financial highlights

• Net sales were Rs.31,677.67 lakh versus Rs.27,811.00 lakh; total income was Rs.32,041.70 lakh versus Rs.27,909.80 lakh.

• Operating profit before depreciation, interest and tax rose to Rs.3,506.06 lakh from Rs.3,081.52 lakh; PBT before exceptional items was Rs.2,627.91 lakh versus Rs.2,272.70 lakh.

• Reported net profit was Rs.1,734.65 lakh versus Rs.3,742.31 lakh, which included a prior-year land-sale gain; adjusted PAT excluding the prior-year after-tax non-recurring gain rose 18.46%.

• Basic and diluted EPS was Rs.5.81 before and after exceptional items in FY09, versus Rs.6.53 before and Rs.16.70 after exceptional items in FY08.

Outlook and guidance

• FY10 focus areas include cable growth, North Indian market penetration, exports, industrial LT cable clients and generating sales from new factories.

• Management expected to expand agricultural pump production to meet demand and build the new LT Power Cable market in South India.

• The stated strategy is to broaden the market presence beyond stabilizers into a national electrical solutions business, including North East India.