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The consumer electrical and electronics company V-Guard Industries Ltd has registered a 20 per cent growth in its net profit at ₹23 crore in Q2 in FY-16. The figure in the corresponding period was ₹19 crore.
The net revenue from operations was ₹433 crore, which remains at the same level when compared with turnover of the corresponding quarter of the previous financial year.
According to Mithun K.Chittilappilly, Managing Director, reduction in raw material costs and better realization in new markets have lead to better margins. However, the average realization in the wires and cables category which contributes 30 per cent of the sales was lower by 10 per cent due to reduction in copper prices and this has affected the overall sales growth.
On business outlook, he said the business environment continues to be challenging leading in flat growth in overall sales. The expansion work of new cable plant in Coimbatore is fast progressing and expected to be completed before the end of FY 17.
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