V-Guard Industries Q1 net profit falls 46% to Rs 23 crore

V-Guard Industries today reported a 46 per cent decline in its net profit to Rs 23.25 crore for the first quarter ended June 30.

The company had posted a net profit of Rs 43.03 crore during the same period previous fiscal, V-Guard Industries said in a BSE filing.

The company said destocking by trade due to GST led to drop in volumes and consequent drop in margins.

Besides, increase in raw materials' prices and delayed price increases in the market also adversely impacted margins, it added.

Revenue from operations during the quarter under review stood at Rs 569.07 crore, as against Rs 560.89 crore in the corresponding period last year, up 1.5 per cent.

"July sales have been encouraging and we hope to recoup lost sales in the next couple of quarters as we expect trade to start re-stocking once initial GST hiccups are out of the way," V-Guard Industries MD Mithun K Chittilappilly said.

The stock closed 8.08 per cent down at Rs 177.50 on BSE.