New Delhi [India], June 1 (ANI): Consumer electricals and electronics major V-Guard Industries on Monday reported 47 per cent plunge in its consolidated profit after tax at Rs 32 crore for the quarter ended March 31.
In Q4 FY19, it had reported a profit of Rs 61 crore. The net revenue from operations for the quarter was Rs 541 crore, declining by 27 per cent over the corresponding period of the previous year (Rs 746 crore).
"The nation-wide lockdown to combat the Covid-19 pandemic had a collateral impact in terms of revenue loss and the attendant profit impact," the company said in a statement.
"In view of the interim dividend paid during the year under review, the board of directors has not recommended any final dividend."
Managing Director Mithun K Chittilappilly said he expects the effect of the pandemic to last for a few months during which consumer demand for discretionary items will remain subdued.
"We see the current challenges to be a temporary phenomenon and our balance sheet is strong enough to withstand these headwinds. We are confident that the business will bounce back strongly in the months to come," he said.
V-Guard follows an asset-light model, outsourcing nearly 58 per cent of its products from a range of vendors. It has tie-ups with small scale industries and self-help groups spread across southern India.
The blended manufacturing policy helps optimise capital expenditure and working capital requirements.