V-Guard Industries has reported a modest 3.4% increase in profits for Q3 of FY2025, with the company showing growth in revenue, though faced with some quarterly setbacks.
V-Guard Industries, a major player in the electrical appliances and consumer electronics sector, posted its Q3 FY2025 results on January 28, 2025. The company reported a profit increase of 3.4% year-on-year (YoY), with a profit of ₹60.22 crore. Revenue reached ₹1,268.65 crore, marking an 8.86% YoY rise. However, the company’s performance in the current quarter showed mixed results.
Despite the YoY growth, V-Guard’s revenue fell by 1.96% when compared to the previous quarter, and its profit dipped by 5%. These figures suggest the company faces challenges on a quarter-to-quarter basis, even as it continues to show progress on an annual scale.
Mixed Results Amid Overall Growth
V-Guard’s performance over the past quarter revealed some unexpected hurdles. The year-on-year revenue growth seems promising at first glance, but it masks a decline in some key metrics.
While the revenue saw an 8.86% increase from the same period last year, the company experienced a drop of 1.96% when comparing the current quarter’s figures to the previous one. This decline in quarterly revenue signals a tough period for the brand in recent months.
The company also faced a 5% drop in profit from the prior quarter. This drop, while still in the positive YoY territory, hints at potential operational pressures. A closer look at the numbers shows that its Selling, General & Administrative expenses increased by 0.56% quarter-on-quarter and spiked 57.38% year-on-year. Such significant changes in SG&A costs could be factors contributing to the quarterly downturn.
Interestingly, the operating income fell by 10.27% compared to the previous quarter, and it dropped by 4.1% year-on-year. This downturn in operating income could point to higher production costs or other operational challenges affecting the bottom line.
The earnings per share (EPS) for Q3 stood at ₹1.37, reflecting a slight increase of 3.01% YoY. While the figure is positive, it underscores that profit growth has been modest relative to the rise in revenue.
Stock Market Performance and Analyst Sentiment
V-Guard Industries has had a tough time in the stock market lately, with the company’s stock posting a -6.54% return in the past week, a -22.84% return over the last six months, and a -16.26% year-to-date return. These figures suggest that investors have been cautious, likely reacting to the mixed financial results and quarterly performance.
The market capitalization of V-Guard Industries stands at ₹15,403.6 crore as of January 29, 2025. Despite its ongoing growth in revenue and profit, the company’s share price has been volatile. V-Guard’s stock has fluctuated between ₹288.95 and ₹577.45 in the past 52 weeks, reflecting investor uncertainty.
When looking at the stock’s performance and analyst outlook, there is a mixture of sentiment. Of the 17 analysts covering the company, opinions are split. One analyst has given a “Strong Sell” rating, one has a “Sell” rating, five have recommended a “Hold,” five analysts have a “Buy” rating, and five have rated the stock as “Strong Buy.”
The consensus recommendation, however, as of January 29, 2025, is a “Buy,” indicating a positive outlook for V-Guard despite the short-term challenges.
Key Metrics at a Glance
| Metric | Q3 FY2025 | Q3 FY2024 | YoY Change |
|---|---|---|---|
| Profit | ₹60.22 cr | ₹58.32 cr | +3.4% |
| Revenue | ₹1,268.65 cr | ₹1,166.12 cr | +8.86% |
| Operating Income | ₹89.25 cr | ₹93.78 cr | -4.1% |
| Earnings Per Share (EPS) | ₹1.37 | ₹1.33 | +3.01% |
| SG&A Expenses | ₹160.98 cr | ₹102.28 cr | +57.38% |
The table above highlights some key financial figures for V-Guard Industries, demonstrating both areas of growth and concern.
Looking Ahead: V-Guard’s Outlook for FY2025
As V-Guard continues to navigate the current fiscal year, the company will likely face a balancing act. On one hand, its year-on-year growth signals healthy demand for its products. On the other hand, the quarterly decline in revenue and profit, combined with rising SG&A expenses, presents some challenges.
In the coming months, V-Guard Industries will likely focus on tightening its operations and managing costs more efficiently to combat any future quarterly downturns. Investors and analysts will be watching closely to see if the company can sustain its growth and improve its stock market performance.
