Who wrote this article?

Shreesh Biradar, Capitalmind's research team.

What does the "**The other major analysis points are:**" section say?

The cost of materials has come down drastically, cost of materials accounted for 25.04% of the net sales, where as for the same quarter previous year the cost of materials accounted for 29.66% of the net sales. The Company's electronics segment has been the minting machine for the company. While only 17.41% capital is employed on it, the Electronic segment brings in 38.49% of total revenue accounting for 51.5% of the profit. The company is almost debt free with only Rs 58 lakhs as its finance cost, which is quite negligible for company of that size. The sales was good due to products like fans, pumps and stabilizers.

What does the "**Future Plans**" section say?

It plans to launch gas stoves in coming quarter with outlook on festive season and strong consumer demand in the segment. With the government's focus on LPG expansion, the gas stove business should get a leg up. It is streamlining with backward integration by setting up in house PVC compounding unit at Coimbatore.

Result Analysis : V-Guard Profits Increase by 70% for Q1FY17

27 Jul 2016Shreesh Biradar2 min read

Quick Facts

What is "Result Analysis : V-Guard Profits Increase by 70% for Q1FY17" about?
What category is this article in?: Stocks
Who wrote this article?: Shreesh Biradar, Capitalmind's research team.
When was this article published?: Published 27 July 2016.
How long does this article take to read?: 2 min read
What topics does this article cover?: Q1FY17 Results, VGUARD
What does the "**The other major analysis points are:**" section say?: The cost of materials has come down drastically, cost of materials accounted for 25.04% of the net sales, where as for the same quarter previous year the cost of materials accounted for 29.66% of the net sales. The Company's electronics segment has been the minting machine for the company. While only 17.41% capital is employed on it, the Electronic segment brings in 38.49% of total revenue accounting for 51.5% of the profit. The company is almost debt free with only Rs 58 lakhs as its finance cost, which is quite negligible for company of that size. The sales was good due to products like fans, pumps and stabilizers.
What does the "**Future Plans**" section say?: It plans to launch gas stoves in coming quarter with outlook on festive season and strong consumer demand in the segment. With the government's focus on LPG expansion, the gas stove business should get a leg up. It is streamlining with backward integration by setting up in house PVC compounding unit at Coimbatore.
What does the "Disclaimer" section say?: Nothing in this newsletter is financial advice and should not be construed as such. Please do not take trading decisions based solely on the matter above; if you do, it is entirely at your own risk without any liability to Capital Mind. This is educational or informational matter only, and is provided as an opinion. Disclosure: The authors at Capital Mind have positions in the market and some of them may support or contradict the material given above, or may involve a direction derived from independent analysis.

The consumer electrical and electronics company V-Guard has released it’s Q1FY17 results. V-guard has posted a net profit increase of 70%, despite a growth of only 14.70% in its revenue year on year. The company improved its operating margin from 7.93% in Q1FY16 to 10.46% for the current reported quarter.

The other major analysis points are:

The cost of materials has come down drastically, cost of materials accounted for 25.04% of the net sales, where as for the same quarter previous year the cost of materials accounted for 29.66% of the net sales.
The Company’s electronics segment has been the minting machine for the company. While only 17.41% capital is employed on it, the Electronic segment brings in 38.49% of total revenue accounting for 51.5% of the profit.
The company is almost debt free with only Rs 58 lakhs as its finance cost, which is quite negligible for company of that size.
The sales was good due to products like fans, pumps and stabilizers.

Future Plans

It plans to launch gas stoves in coming quarter with outlook on festive season and strong consumer demand in the segment. With the government’s focus on LPG expansion, the gas stove business should get a leg up.
It is streamlining with backward integration by setting up in house PVC compounding unit at Coimbatore.

VGuard Q1FY17 Result

You Might Also Like:

Result Analysis: Bajaj Auto
Q1 FY17 Earnings Report : Wipro, Hindustan Unilever, Ultratech Cement and More
[Results Summary : June 2016 : As of 15th July](http://Results Summary : June 2016 : As of 15th July)

Divider

Disclaimer

Nothing in this newsletter is financial advice and should not be construed as such. Please do not take trading decisions based solely on the matter above; if you do, it is entirely at your own risk without any liability to Capital Mind. This is educational or informational matter only, and is provided as an opinion.

Disclosure: The authors at Capital Mind have positions in the market and some of them may support or contradict the material given above, or may involve a direction derived from independent analysis.