India's V-Guard reports fall in Q4 profit hurt by loss in consumer durables
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Indian electronic products manufacturer V-Guard Industries Ltd reported a 41% fall in its fourth-quarter profit on Tuesday, dragged by a loss in the consumer durables segment.
The Kochi, Kerala-based company's consolidated net profit fell to 527.3 million rupees ($6.37 million) in the quarter ended March 31, from 897 million rupees a year ago.
The company's revenue from operations rose more than 7% to 11.4 billion rupees, as revenue from its new Sunflame segment offset muted growth in other segments.
Pre-tax profit from its consumer durables segment swung to a loss of 11.3 million rupees from 49.5 million rupees profit a year ago. Revenue from the segment declined 3.36% to 2.86 billion rupees.
Pre-tax profit from its electronics segment fell almost 25%, while its electricals segment fell almost 14% in the quarter.
V-Guard announced the acquisition of kitchen appliances-maker, Sunflame Enterprises Pvt. Ltd. last December for 6.6 billion rupees. Subsequently, the company reported a pre-tax profit from the segment at nearly 80 million rupees.
Total expenses increased 11.3% to 10.71 billion rupees.
Earlier in the month bigger rival, Havells India Ltd posted a surge in its Q4 profit, backed by strong air conditioner sales.
Separately, the V-Guard recommended a final dividend of 1.3 rupees per share.
The company's shares fell 3.14% after the results were announced.
