Q3 2025 V Guard Industries Ltd Earnings Call Transcript
Key Points
- 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.
Ladies and gentlemen, good day, and welcome to the V-Guard Industries Q3 FY25 earnings conference call hosted by Investec Capital Services Limited. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Aditya Bhartia from Investec Capital Services Limited. Thank you, and over to you, sir.
Thank you, Teja. Good afternoon, everyone. A warm welcome on behalf of Investec India to the Q3 FY25 earnings call of V-Guard. We have with us the senior management team represented by Mr. Mithun Chittilappilly, Managing Director; Mr. Ramachandran, Director and Chief Operating Officer; and Mr. Sudarshan Kasturi, Chief Financial Officer.
Now I hand over the call to the management for initial comments, post which we'll open the floor for Q&A. Thank you, and over to you, sir.
Yes. Thank you, Aditya, Investec team
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