Latest news with #Sunflame
Business Standard
29-07-2025
- Business
- Business Standard
Board of V-Guard Industries approves in-principle merger with Sunflame
At meeting held on 29 July 2025 The Board of V-Guard Industries at its meeting held on 29 July 2025 has approved has accorded in-principle approval of merger of Sunflame with the Company. Sunflame, Wholly-owned Subsidiary and a related party of the Company, is engaged in manufacturing and trading of kitchen appliances, recorded turnover of Rs 254.39 Crores and profit after tax of Rs 3.29 Crores in Financial Year 2024 25. The proposed merger is being carried out to take advantage of synergies with the Holding Company and for optimum utilization of its resources including exposure to R&D expertise, technical know-how, quality standards, product improvement, etc.
Reuters
29-07-2025
- Business
- Reuters
India's V-Guard misses profit estimates as weak summer hits cooling product demand
July 29 (Reuters) - V-Guard Industries ( opens new tab missed quarterly profit estimates on Tuesday, as sales in the cooling and kitchenware segments declined from a year earlier. The company reported a net profit of 738.5 million rupees ($8.5 million) for the quarter ended June 30, compared with 989.7 million rupees a year earlier. Analysts, on average, expected a profit of 844 million rupees, according to data compiled by LSEG. The company's revenue shrank marginally to 14.66 billion rupees from 14.77 billion rupees a year ago, led by a decline in sales in its kitchenware brand, Sunflame, and its consumer durables segment. V-Guard said that it will enter the lighting business. Early monsoon showers and a cooler-than-usual summer in south India, one of V-Guard's key markets, resulted in a 16.3% sales decline in the consumer durables portfolio, which comprises air coolers and fans. "Topline growth for the first quarter of fiscal 2026 was subdued due to a weak summer season," V-Guard said in a press release. Sales in the company's kitchenware business also declined, reflecting ongoing pressure in its distribution network. V-Guard is facing issues with sales channels that cater to armed and government personnel. These bulk-buying channels, which typically sell at discounted rates, have stockpiled large inventories and are housing a wider range of brands, V-Guard has said. PEER COMPARISON * 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 APRIL TO JUNE STOCK PERFORMANCE -- All data from LSEG -- $1 = 86.8350 Indian rupees
Yahoo
31-01-2025
- Business
- Yahoo
V-Guard Industries Ltd (BOM:532953) Q3 2025 Earnings Call Highlights: Strong Electronics Growth ...
Consolidated Net Revenues: INR 1,269 crores, 8.9% Y-o-Y growth. Electronics Segment Revenue Growth: 28% Y-o-Y. Electricals Segment Revenue Growth: 1.2% Y-o-Y. Consumer Durables Segment Revenue Growth: 8.1% Y-o-Y. Sunflame Top-line Growth: 4% Y-o-Y. Non-South Market Revenue Growth: 15.8% Y-o-Y, contributing 48.4% of total revenues. South Market Revenue Growth: 3.7% Y-o-Y. Gross Margin: 36.2%, up from 33.7% last year, an increase of 250 bps. EBITDA (excluding other income): INR 104 crores, 2.5% Y-o-Y increase. EBITDA Margin: 8.2%, down 50 bps from 8.7% last year. Investment Approval: INR 100-crore investment into VCPL for Hyderabad facility. Warning! GuruFocus has detected 2 Warning Signs with BOM:532953. Release Date: January 29, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. V-Guard Industries Ltd (BOM:532953) reported consolidated net revenues of INR1,269 crores, reflecting a year-over-year growth of 8.9%. The Electronics segment showed strong performance with a revenue growth of almost 28% year-over-year. The non-South market demonstrated a robust performance with 15.8% year-over-year revenue growth, contributing 48.4% of total revenues. Gross margin improved to 36.2% in Q3 FY25 from 33.7% in the previous year, driven by higher in-house manufacturing and cost-saving initiatives. The company is on track to fully repay the loans related to the Sunflame acquisition by the financial year-end, indicating strong cash flow management. The Electricals segment registered a modest growth of 1.2%, with demand for wires impacted by commodity price fluctuations. The Consumer Durables segment faced challenges, with muted demand for kitchen appliances and water heaters affected by a late onset of winter. EBITDA margin decreased to 8.2% from 8.7% in the previous year due to higher advertising and promotion spend, particularly in Sunflame. Employee costs rose significantly year-over-year due to reversals in the previous year's third quarter. The Southern market growth was moderate at 3.7% year-over-year, impacted by a decline in the wire segment and broader market challenges. Q: Why has growth in the Southern region moderated compared to previous quarters? A: Mithun Chittilappilly, Managing Director, explained that the South market has a larger contribution from the wire segment, which was impacted by commodity price fluctuations. This decline in wire sales affected the South market more adversely than the non-South regions. Q: Are there any signs of upstocking in the wire category for the fourth quarter? A: Mithun Chittilappilly noted that there has been an increase in copper prices in January, leading to a round of price increases in the market, which has restarted upstocking for wires. Q: Can you provide insights into the growth of the Electronics segment, particularly batteries and stabilizers? A: Mithun Chittilappilly stated that while specific product numbers are confidential, the company has invested in manufacturing batteries, which has improved margins. Growth has been observed across categories, with a notable increase in the solar rooftop solution business. Q: What is the outlook for the kitchen appliances segment, given the continuous slowdown? A: Ramachandran Venkataraman, COO, suggested that the slowdown might be due to over-penetration during COVID and stressed household balance sheets. He noted that the replacement cycles have become longer, and impulse purchases have slowed down. Q: How is the company addressing the competitive intensity in the sector and its impact on margins? A: Ramachandran Venkataraman mentioned that while the industry has seen margin compression due to competitive pressures and muted growth, V-Guard aims to expand margins by 0.25% to 0.5% annually through manufacturing efficiencies and premiumization. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
