(Reuters) – Indian electrical appliances manufacturer V Guard Industries reported a smaller-than-expected 7.5% rise in its second-quarter profit on Tuesday, as monsoon rainfall dampened demand for cooling products and surging expenses ate into margins.
Consolidated net profit rose to 633.9 million rupees ($7.54 million) for the three-month period ended Sept. 30, from 589.5 million rupees a year earlier.
Analysts, on average, had expected a profit of 685 million rupees, according to estimates compiled by LSEG.
Revenue from operations climbed 14% to 12.94 billion rupees, while total expenses rose more than 13%.
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KEY CONTEXT
Consumer durable firms struggled with weak demand during the seasonally weak September quarter, said analysts, adding that inflationary pressures also weighed on consumer sentiment.
However, demand for products like stabilisers and water heaters rose during the monsoon season.
Costs of key raw materials copper and aluminium surged, denting the company’s margins.
PEER COMPARISON
Valuation (next 12 Estimates (next 12 Analysts’ sentiment
months) months)
RIC PE EV/EBI Price/ Revenue Profit Mean # of Stock to Div
TDA Sales growth (%) growth (%) rating* analyst price yield
s target** (%)
V Guard Industries 43.38 30.12 – 14.35 29.20 Buy 17 0.89 0.34
Havells India 58.66 39.83 4.53 15.88 23.80 Hold 23 0.86 0.54
Crompton Greaves 37.86 24.97 2.56 12.80 29.19 Buy 32 0.80 0.77
Consumer Electricals
Voltas 58.90 43.38 2.74 17.56 65.33 Hold 33 1.09 0.31
* The mean of analyst 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
JULY-SEPTEMBER STOCK PERFORMANCE
— All data from LSEG IBES
— $1 = 84.0500 Indian rupees
(Reporting by Ashna Teresa Britto; Editing by Subhranshu Sahu and Mrigank Dhaniwala)
Disclaimer: This report is auto generated from the Reuters news service. ThePrint holds no responsibilty for its content.