BENGALURU (Reuters) – India’s V-Guard Industries posted a first-quarter profit that beat analysts’ estimates on Wednesday, driven by strong demand for its electrical products which range from kitchen appliances to water heaters.
The company’s consolidated net profit rose 54% to 989.7 million rupees (nearly $12 million) in the three-month period ended June, beating analysts’ average estimates of 845.8 million rupees, according to LSEG data.
Revenue from operations climbed 22% to 14.77 billion rupees, also beating estimates of 14.07 billion rupees.
For further results highlights click.
KEY CONTEXT
The country’s consumer durables sector experienced healthy demand during the quarter due to severe summer and despite price hikes, analysts said.
The summer season, which extended into June this year, increases demand for a host of appliances such as fans and air coolers as well as for products like voltage stabilizers to protect against power surges that are frequent during the summers.
Besides that, V-Guard also benefited from demand for its cables and wires due to the rising construction activity in the real estate and infrastructure sectors.
PEER COMPARISON
Estimates (next 12 Analysts’ sentiment
months)
RIC PE EV/EBITD Revenue Profit Mean # of Stock to Div
A growth (%) growth rating* analysts price yield
(%) target** (%)
V Guard 53.32 35.18 13.49 29.72 Buy 18 1.15 0.31
Industries
Havells India 61.23 43.02 21.03 28.30 Hold 21 0.94 0.51
Crompton Greaves 44.54 29.48 12.50 31.18 Buy 31 1.05 0.69
Voltas 57.09 43.45 16.52 107.60 Hold 34 1.10 0.37
* The mean of analysts’ ratings standardised to a scale of “strong buy”, “buy”, “hold”, “sell”, and “strong sell”** The ratio of the stock’s last close to analysts’ mean price target; a ratio above 1 means the stock is trading above the PT
APRIL TO JUNE STOCK PERFORMANCE
— All data from LSEG
— $1 = 83.7075 Indian rupees
(Reporting by Kashish Tandon in Bengaluru; Editing by Sherry Jacob-Phillips)
Disclaimer: This report is auto generated from the Reuters news service. ThePrint holds no responsibilty for its content.