The Board of Directors in their meeting held on July 31, 2017, announced the unaudited financial results for the first quarter ended June 30, 2017.
- Net Revenue from operations for the first quarter ended June 20, 2017 was Rs 569.07 crores, a growth of 1.5% compared to Rs 560.89 crores for corresponding period of last year.
- Profit After Tax for the quarter was Rs 23.25 crores; down by 46% compared to Rs 43.03 crores for corresponding period of last financial year.
- GST related temporary de-stocking by trade led to drop in volumes and consequent drop in margins. Increase in raw material prices and delayed price increases in the market also adversely impacted margins. GST related one-off expenses and start-up costs of Sikkim factory also negatively impacted bottom line.
Commenting on the company’s performance, Mr Mithun K Chittilappilly, Managing Director, V-Guard Industries Ltd said, “The first quarter has seen significant disruptions on account of transition to the GST regime. July sales have been encouraging and we hope to recoup lost sales in the next couple of quarters as we expect trade to start restocking once initial GST hiccups are out of the way. Although GST creates short term pain, it will lead to significant long term gains as V-Guard is positioned to take advantage as markets shift from unorganised business to organised business”.