Overall Result above our expectations, Maintain Buy on segmental outlook. Quarterly Performance: V-Guard registered a robust growth in its Q4FY10 net sales. Net sales for the quarter ended March 2010 registered robust growth of 67%to Rs 142.37 Cr on the back increase in Electrical/ Electro Mechanical segment revenues by 66% to Rs 93.45 Cr which contributes 66% of total sales and Electronics segment up by 31% to Rs 43.70 Cr which contributes 31% of total sales and rest is from the other segments.
EBIDTA for the quarter stood at Rs 13.36 Cr as against Rs. 9.84 Cr in the corresponding quarter last year. But operating profit margins witnessed a dip by 210 bps to 9.4%, mainly on the back of higher raw material costing & Advertisement & promotional cost. With growing advertising cost & to penetrate the pan India retail consumer market, we believe V-Guard will continue to have higher selling & advertising cost going forward to cover-up the pan India expansion plan.