V-Guard Industries on Monday reported 47.49 per cent decline in March quarter consolidated net profit at Rs 32.23 crore due to the impact of lockdown. It clocked a profit of Rs 61.38 crore in January-March, 2018-19, V-Guard Industries said in a regulatory filing.
Revenue from operations was down 27.44 per cent to Rs 541.13 crore during the period under review as against Rs 745.78 crore in the year-ago period.
“The nationwide lockdown to combat the COVID-19 pandemic had a collateral impact in terms of revenue loss and the attendant profit impact,” V-Guard said in a post earning statement.
Total expenses were at Rs 503.90 crore in March quarter 2019-20 as against Rs 671.57 crore in the year-ago period.
Revenue from electronics segment was at Rs 150.31 crore. From electricals , the revenue stood at Rs 246.66 crore during the quarter under review. Revenue from Consumer Durables segment was at Rs 144.14 crore.
However, in 2019-20, V-Guard's net profit was up 12.02 per cent to Rs 188.25 crore. It was Rs 168.04 crore in the previous year.
Revenue from operations in the fiscal was Rs 2,502.94 crore, down 3.51 per cent from Rs 2,594 crore in 2018-19.
"We expect the effect of the pandemic to last for a few months, during which consumer demand for discretionary items will remain subdued," Managing Director Mithun K Chittilappilly said.
"However, the fundamentals of the business remain strong; we have significantly improved our gross margins and we continue to invest in innovation and business capabilities to achieve our long-term ambitions," he said.
The company sees the current challenges as a temporary phenomenon and its balance sheet is strong enough to withstand these headwinds.
"We are confident that the business will bounce back strongly in the months to come,” he said. Shares of V-Guard Industries on Monday settled at Rs 184 apiece on BSE, up 4.01 per cent from the previous close.