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V-Guard Industries Ltd.

BSE: 532953 | NSE: VGUARD |

Represents Equity.Intra - day transactions are permissible and normal trading is done in this category
Series: EQ | ISIN: INE951I01027 | SECTOR: Electric Equipment

BSE Live

Apr 07, 16:00
157.00 3.70 (2.41%)
Volume
AVERAGE VOLUME
5-Day
13,527
10-Day
15,799
30-Day
14,638
11,955
  • Prev. Close

    153.30

  • Open Price

    156.00

  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    0.00 (0)

NSE Live

Apr 07, 15:59
157.50 3.50 (2.27%)
Volume
AVERAGE VOLUME
5-Day
266,046
10-Day
334,274
30-Day
373,091
165,684
  • Prev. Close

    154.00

  • Open Price

    155.70

  • Bid Price (Qty.)

    0.00 (0)

  • Offer Price (Qty.)

    157.50 (274)

Annual Report

For Year :
2019 2018 2017 2016 2015 2014 2013 2012 2011

Chairman's Speech

Dear Shareholders, Before taking you to the highlights of performance of the year under review, I would like to inform you with profound grief the sad demise of Shri. P G R Prasad, who served the Board of your Company as Chairman & Independent Director, on 16th November, 2012. He served the Company as Chairman for five years and has contributed significantly to put in place good operational systems and procedures. He had guided the Management in adoption of best practices in governance and had made significant contributions during Board deliberations. At this juncture, I along with my other colleagues on Board, sincerely appreciate the contributions made by Shri. Prasad, during his tenure in the Company. I convey my gratitude to the Board and shareholders for re-designating me as the Chairman of the Board of Directors to take the Company forward. Maintaining its significant growth momentum, your Company has delivered another encouraging performance during the financial year 2012-13. I am happy to share with you that revenues have now grown by over four times in the last four years to Rs. 1,360 crores, compounded growth of 44%. Profit has grown at an average rate of 38% in the same period, doubling your net worth. This strong show is driven by our strategic initiatives, those of penetrating newer markets outside South India and building strong brand recognition across an expanding range of products. Non-south markets now contribute 25% of revenues from a mere 5% in financial year 2008. We have continued to make significant investments in rapidly expanding our non-south distribution network and remain focused on increasing sales output by adding retail presence under existing distributors. Our objective is on improving average revenue per distributor in non-south markets from the current Rs. 2.5 crores annually to a level at par with our south markets which are at Rs. 7.5 crores. Meanwhile, in the established south markets, your Company maintains its strong competitive position. Revenues from these markets saw robust growth of 37% last year, crossing the Rs. 1,000 crores milestone. Growth has been broad-based across all our product categories. The Digital UPS segment stood out, posting phenomenal growth of almost 140%. Demand for this product continues to be robust, backed by the favourable market conditions. We are doubling capacity at our house wiring cable plant in Kashipur, Utharakhand. This plant is operating at maximum output, driven by underlying demand from construction activity in tier 2 and tier 3 cities. We have adopted a systematic approach to new product launches, introducing them initially in our stronghold market of Kerala before extending to other South Indian states, and finally to the rest of the country. Switch gears and induction cook tops which were launched last year in South Indian markets have received excellent response and recorded a sales of Rs. 27 crores. We also plan to launch mixer-grinders in Kerala, ahead of Onam season. This will expand our portfolio in the home appliances category, leveraging the existing distribution and marketing setup for induction cook tops. Despite the slowdown in white goods sales, we are delivering strong growth in stabilizers. This is mainly on account of our expansion into non-South markets where there is strong demand for this product, driven by its high utility, affordability and absence of large branded players. We have seen a good pick-up in demand for the product during this summer season. With the vision to become a formidable pan Indian player, we continue to spend considerably on advertising and promotions in non-South markets. The focus is to expand penetration and pricing power in these markets. In the current year, we intend to maintain our advertisement expenditure between 3.5-4% of revenues but allocate it adequately to capture the summer demand, using IPL as a platform to reach a large audience. Growing brand acceptance, we believe, will help us extract higher price realizations and also gain share away from our competitors. We have also made rapid strides on the working capital front. Our cash conversion cycle has seen an improvement of 4 days over the last year and stood at 81 days at the end of the financial year 2012-13. This improvement can be attributed to our vendor financing and bill discounting initiatives. In addition to this, we also intend to increase coverage of channel financing in financial year 2013-14. This, coupled with improved pricing power in non-South markets, will help better the working capital position further. The Board of Directors have recommended a dividend of Rs. 3.50 per share amounting to a dividend payout of almost 20% including dividend distribution tax. This underscores our commitment to returning value to shareholders. The existing Board of the Company was re-constituted by inducting Mr. Cherian N Punnoose, a Chartered Accountant, who has held important positions in leading corporations, as an Additional Director in the Independent Director category and was designated as Vice Chairman of the Board and was also elected as Chairman of Audit Committee. Dr. George Sleeba''s period of appointment as Joint Managing Director has expired and he has not offered for re-appointment and Mr. Ramachandran V has been appointed as a Whole-time Director. To sum up, we have made further inroads in our quest to become a respected nationwide brand and are confident of maintaining the growth momentum in the coming years also. Thrust will be given to achieve steady margins, focused working capital management and stable asset base which will lead to strong cash generation and growth. I would like to thank our shareholders, for the confidence reposed in V-Guard Industries. I also express my gratitude to the customers for their faith in the products and services of the Company and also the various Business Associates, Vendors, Banks, Central and various State Governments for their continued support. On behalf of my colleagues, I assure you of our total dedication and tireless efforts towards the objective of maximizing returns for all stakeholders. With Best Wishes Sd/- Kochouseph Chittilappilly Chairman