V-Guard Industries (532953) Q4 11/12 earnings summary

Executive summary

• FY12 gross revenue crossed ₹1,000 crore; net revenue reached ₹993.63 crore, up 36.75% YoY, while PAT rose 28% to ₹50.80 crore.

• Growth came amid a challenging consumer durables market, supported by product mix, price increases, cost controls and stronger non-South sales.

Financial highlights

• Gross revenue was ₹1,006.78 crore; net revenue was ₹993.63 crore versus ₹726.62 crore in FY11.

• Operating profit before depreciation, interest, tax and exceptional items was ₹93.54 crore versus ₹73.04 crore; PBT before exceptional items was ₹69.17 crore versus ₹55.47 crore.

• PAT was ₹50.80 crore versus ₹42.64 crore reported in FY11; excluding the prior-year exceptional item, FY11 PAT was ₹39.70 crore and FY12 growth was 28%.

• FY12 basic and diluted EPS was ₹17.02, versus ₹13.30 excluding the FY11 exceptional item and ₹14.28 reported after it.

Outlook and guidance

• Mixer grinder launch planned for Q2 FY13; switchgear and induction cooktop launches were expected to build on the existing wiring and home-product channels.

• Priorities include deeper rural and non-South penetration, more distributors and dealers, stronger service coverage, and expanded energy-saving product ranges.

• Solar water-heater commercial production at Perundurai was expected in FY13; plans also included capacity additions at Kashipur and Kala Amb and warehouses at Kochi and Hyderabad.