V-Guard Q1 net drops 17% to Rs 18 crore; revenue up 28%

MUMBAI: V-Guard, a consumer electrical and electronics company, today reported 17 per cent decline in net profit in the quarter ended June 30 at Rs 17.64 crore against Rs 20.65 crore in the same period last fiscal.

The Kerala-based firm's revenue in the quarter stood at Rs 408 crore, up 28 per cent from Rs 319 crore posted in the year-ago period.

"The company registered good growth during the first quarter in terms of revenue. The business outlook remains positive, we continue to see an enhanced demand for our categories of products, considering the festive season of Onam in Kerala," V-Guard Managing Director Mithun Chittilappilly said in a statement here.

The company increased its advertisement spend considerably during the period under review to enhance brand visibility, the statement said.

"The advertisement spend increased by almost 85 per cent, which led to a reduction in margins."

V-Guard's wires, pumps and inverters performed exceptionally well and contributed 55 per cent to the total revenue for the April-June period, it added.