Kochi: The Board of Directors of V-Guard Industries Limited, the electronic and electrical major today considered and adopted the unaudited financial results of Company for the quarter ended 30th June, 2011.
The net sales of the Company rose to Rs 240.07 crores, showing an increase of 43%, from Rs 168.21 crores, sales in the corresponding period of the previous year. The Company achieved a profit after tax of Rs 12.34 crores during the quarter under review, thereby showing an increase of 11.38% over the profit after tax of 11.08 crores achieved in the same period of the last year.
Mithun K Chittilappilly, Executive Director of the Company said that increased product variants, better distribution network and improved brand recall levels are the factors for increase in the top line. He added that both south and Non south markets in India have contributed to achieve the desired sales.
The Selling and Distribution expenses during the quarter include an expenditure towards advertising in the Indian Premier League (IPL) TV campaign and sponsoring of one team in IPL 2011, amounting to Rs 6.34 crores, which was nil during the previous year Dr George Sleeba, Joint Managing Director said that the Company is coming out with a state of art facility for manufacture of Solar Water Heater at the SIPCOT Industrial area at Perundurai, near Erode Dist., at an estimated cost of Rs 8.50 crores.
He said that solar water heaters of different capacities will be manufactured with new technology and the commercial production will commence in the last quarter of the financial year 2011-12. He added that other expansion plans for the year includes increasing the manufacturing capacities of LT Cable factory at Coimbatore and water heater and fan unit at Kala Amb and increasing the ware housing facilities at Bangalore, Palakkad and Kochi.
The Company's 15th Annual General Meeting was held on 25th July, 2011 at Kochi and the members approved the dividend of Rs 3.50 per share for the financial year 2010-11.
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