Investor Presentaiton
A
Managing Director's
Message
V-GUARD
Commenting on the performance for Q4 & FY19, Mr. Mithun Chittilappilly, Managing Director -
V-Guard Industries Limited said,
"We have delivered a growth of 12% (GST-adjusted), EBITDA growth of 20% and PAT growth of 24% for full year FY19,
despite the challenges faced during the quarter in terms of unfavourable weather conditions, floods in Kerala during Onam and
volatility in commodity and currency. The growth was driven by Water Heater, Fan and Wires segments. Our emerging product
categories of Switchgears, Modular Switches, Kitchen Appliances and Air Coolers continue to witness strong traction and have
contributed Rs 180 crore to the top-line. Modular Switches were launched in some of the non-South markets while Air Coolers were
rolled out to more South and non-South markets in Q4 FY19.
Non-south markets continue to make steady progress recording a growth of 15.3% in FY19 and contributing 39% of the total
revenue as compared to 37% a year ago. Growth in non-South markets in Q4 was impacted by the delayed onset of summer. We
continue to invest in growing our presence further and envisage 50% contribution from this business over the next 4-5 years. South
markets saw a strong recovery in second half of the year, recording a robust growth of over 16% in Q4.
Overall growth in Q4 came in at 12.3% driven by Wires, Modular Switches, Switchgears and Kitchen Appliances segments.
During the quarter, we were able to land some pricing actions to bring margins back on track to 11.5% in Q4, resulting in our
highest ever quarterly PAT of Rs. 59 crore, up 115%.
Our prudent approach and focus on profitable and sustainable growth has resulted in strong cash flow generation to the tune of Rs.
152 crore in FY19. The Board has recommended dividend of Rs 0.80 per equity share for FY19. We continue to invest towards
enhancing organisational capabilities and improving our competitiveness in the market. Efforts on innovation, R&D and product
development will continue to be made in order to roll out differentiated offerings and drive profitable and sustainable growth.
Further, our strong balance sheet provides a platform to pursue inorganic opportunities, if a favourable opportunity comes our
way."View entire presentation