India’s V-Guard posts Q2 profit in line with estimates

financialexpress.com:

India’s V-Guard Industries reported second-quarter profit on Tuesday in line with analyst estimates, as more Indians bought air conditioner stabilisers and inverters in a quarter that saw the country’s driest monsoon in over a century.

The electronic products manufacturer maker said its consolidated net profit rose to 589.5 million rupees ($7.08 million) in the quarter ended Sept. 30 from 436.6 million rupees a year earlier.

Analysts, on an average, had expected a profit of 589.3 million rupees, according to LSEG data. Consolidated revenue from operations rose 14.9% to 11.34 billion rupees. Monsoon rainfall this year was its lowest since 2018 due to the El Nino weather pattern, Reuters reported, resulting in a pick-up in demand for cooling products.

Copper prices were also stable, analysts said, and demand from the housing and infrastructure sectors remained healthy, with exports rebounding.

Revenue from the electricals segment, which accounted for nearly 41% of the company’s revenue and includes products such as electric water heaters and fans, grew nearly 10%.

Revenue from electronics segment, which accounted for around 23% of total revenue and includes products such as stabilizers and inverters, grew 12.2%. Shares of the company rose as much as 1.9% after results. It had climbed nearly 9% during the Sept. quarter.