VGuard limited conducted their Q4 Fy22 conference call on 20th may 2022.
“Sustaining their margins and improving their product categories.”
Here are the key takeaways..
“Sustaining their margins and improving their product categories.”
Here are the key takeaways..
Business overview
- Company has reported strong quarter during this period.
- New benchmarks are been set by them in both QoQ and YoY levels.
- Company has reported strong quarter during this period.
- New benchmarks are been set by them in both QoQ and YoY levels.
- Their electrical and consumer durable business witnessed strong growth during the period.
- Following to them, Electronics showed a moderate growth.
- In terms of geographical breakup they witnessed strong growth in both of their markets.
- Following to them, Electronics showed a moderate growth.
- In terms of geographical breakup they witnessed strong growth in both of their markets.
- Company faced weak demand from their South American region.
- And on local and foreign land good demand is visible from northern and western regions.
- And on local and foreign land good demand is visible from northern and western regions.
- In electrical space, Company has presence in house wiring cables, switch gears, Modular Switches and pumps.
- All segments are in a division of 70-30 for organisational and unorganised breakup.
- The company have an expected industrial growth of 8-10%.
- All segments are in a division of 70-30 for organisational and unorganised breakup.
- The company have an expected industrial growth of 8-10%.
- They expect to increase their single digit stake to double digit in upcoming period.
- In some products like water keepers company did lost some of their market share due to supply issue and now are focused to get the lost share back.
- In some products like water keepers company did lost some of their market share due to supply issue and now are focused to get the lost share back.
- In electronic space, They have stabilizers and DUPS & Battery in their portfolio.
- Company has 40% plus market share in their stabilizer space and 4-6% in battery space.
- During the period, they faced good pressure in demand due to lower selling and seasonality basis.
- Company has 40% plus market share in their stabilizer space and 4-6% in battery space.
- During the period, they faced good pressure in demand due to lower selling and seasonality basis.
- Though April was strong, with more Heat in areas leading to more use of Ac which requires them.
Financials
- For the period company did reported strong financial performance.
- They still faced margin pressures in their categories due to commodities price hike.
- Their new price control strategies helped them a lot in such tough times.
- For the period company did reported strong financial performance.
- They still faced margin pressures in their categories due to commodities price hike.
- Their new price control strategies helped them a lot in such tough times.
- In revenue levels company grew by 23% QoQ compared last year.
Their south market region contributed more as compared to non south market on YoY levels.
-For EBITDA there was a margin drop due to price hike, but bit of cost reduction from key areas helped them to reduce effect.
Their south market region contributed more as compared to non south market on YoY levels.
-For EBITDA there was a margin drop due to price hike, but bit of cost reduction from key areas helped them to reduce effect.
- Strict focus was there towards inventory maintenance, as due to risk of supply chain disruption nominal levels were taken.
- In terms of price hike about 10% were been made excluding the wire space.
- In terms of price hike about 10% were been made excluding the wire space.
- In terms of materials used, aluminium plays key in various products, there are lots of derivatives available for it which company is heading to control positive note from commodity cycles.
Investments
- In Feb 2022 they invested 16 crores approx in VCPL making them more cost efficient in long term.
- This is all towards their first plant, by aug and sept we will be able to gain more clear view on range of product offerings.
- In Feb 2022 they invested 16 crores approx in VCPL making them more cost efficient in long term.
- This is all towards their first plant, by aug and sept we will be able to gain more clear view on range of product offerings.
- New products are been launched and an effective growth strategy is expected to be implemented by the team.
- Each have its own uniqueness will led to further growth in revenue in times to come.
- Each have its own uniqueness will led to further growth in revenue in times to come.
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