Q2 2025 V Guard Industries Ltd Earnings Call Transcript
Key Points
- V-Guard Industries Ltd (BOM:532953) reported a healthy top-line growth with consolidated net revenues of INR 1,294 Crore in Q2 FY25, marking a 14.1% increase year-over-year.
- The electronic segment, including stabilizers, inverters, and batteries, saw a revenue increase of 18.8%, driven by strong performance in summer products and solar power systems.
- The electrical segment, comprising wires, pumps, switchgears, and modular switches, registered a 16.3% growth year-over-year, with wires witnessing significant growth.
- Gross margins improved to 35.8% in Q2 FY25 from 33.8% in the previous year, aided by a higher share of in-house manufacturing and cost-saving initiatives.
- Effective management of working capital led to robust cash flows, with INR 336 Crore generated from operations in H1 FY25, facilitating debt repayment from acquisitions.
- The consumer durable segment reported a modest top-line growth of 10.6% year-over-year, with the kitchen appliances business facing a slowdown.
- Sunflame, a part of the consumer durable segment, reported a 1.1% decline in top-line growth year-over-year, impacted by reduced orders from the CSD segment.
- The Eastern market, a strong region for V-Guard, was affected by inclement weather, impacting sales.
- There was a marginal impact of 0.6% on company-level growth due to volatility in copper prices affecting the wires segment.
- The EBITA margin, although improved, was only 30 basis points higher than the previous year, indicating limited margin expansion.
Ladies and gentlemen, good day. And welcome to V Guard Industries Limited Q2 FY25 earnings conference call hosted by JM Financial. (Operator instructions)
Please note that this conference is being recorded.
I now hand the conference over to Mr. Deepak Agarwal. Thank you and over to you, sir.
Thank you. Good afternoon and happy Diwali to have you on behalf of JM Financial. I welcome you all to V Gaurd Industries Limited Q2 FY25 earnings.
We have met our senior management represented by Mr. Mithun Managing Director, Mr Sudarshan, Chief Financial Officer, M.r Ramachandran, Director and Chief Operating Officer.
Now I hand over the call to the management for initial comments on quarterly.
Perform and then we'll open the sofa question and answer.
Thank you.
And over to you, sir.
Thank you Deepak and to JM Financial team for hosting
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