Q1 2025 V Guard Industries Ltd Earnings Call Transcript
Key Points
- V-Guard Industries Ltd (BOM:532953) reported a consolidated net revenue of INR1,477 crores in Q1 FY25, marking a 21.6% YoY increase.
- The Electronic segment, including stabilizers and digital UPS, saw a significant revenue growth of 41% YoY.
- The Consumer Durable segment, which includes fans, water heaters, kitchen appliances, and air coolers, achieved a 26% YoY top-line growth.
- Non-south markets delivered a top-line growth of 30% YoY, with revenues in south markets growing 17% YoY.
- Gross margin improved to 36.3% in Q1 FY25, an increase of 380 basis points YoY, driven by pricing actions, softening input prices, and a better product mix.
- The Electrical segment, including wires, pumps, switchgears, and modular switches, registered a modest 7% YoY revenue growth, impacted by trade destocking due to declining copper prices.
- EBIT margins were lower due to higher advertising and promotional expenses and the filling of critical vacancies.
- The overall kitchen industry has been facing subdued demand in recent quarters, affecting V-Guard's performance in this segment.
- The company faces competitive pressures in the fans category, with price hikes primarily driven by increases in commodity prices rather than organic growth.
- Other expenses saw a sharp increase in Q1 FY25, attributed to higher factory-related costs, freight, and warranty expenses.
Ladies and gentlemen, good day, and welcome to the V-Guard Industries Q1 FY25 earnings conference call hosted by Nirmal Bang Institutional Equities Private Limited. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Ms. Natasha Jain from Nirmal Bang Institutional Equities Private Limited. Thank you, and over to you, ma'am.
Thanks, Steve. On behalf of Nirmal Bang Institutional Equities, we welcome all of you to the first-quarter FY25 results conference call of V-Guard Industries Limited. We would like to thank the management for giving us an opportunity to host this call.
We have with us today the senior management represented by Mr. Mithun Chittilappilly, Managing Director; Mr. Ramachandran V., Director and Chief Operating Officer; and Mr. Sudarshan Kasturi, Senior Vice President and Chief Financial Officer.
Now, I will hand over the call to the management for initial comments on the quarterly
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
