V-Guard Industries Ltd has registered a 13 per cent increase in its net profit in Q1 of FY-16 at ₹25.16 crore against ₹22.25 crore in the corresponding quarter.

The net revenue from operations also show a 4.52 per cent jump touching ₹499.28 crore against ₹477.69 crore.

The company said in a statement that a better product mix has helped improve its margins, as the sales of summer dependent products were impacted adversely due to intermittent rains. There was reduction in the inventory turnover days and on account of this, there was decrease in financial charges.

According to Mithun K. Chittilappilly, Managing Director, the environment continues to be challenging as the construction and related activities have slowed down significantly in the country. “We expect that the demand to rebound in the second half of this financial year”, he said.

On the other strategic initiatives, he said the capacity of house wiring cables of the integrated manufacturing facility for wires and cables at Chavady, Coimbatore will be enhanced. The total production capacity from all the plants after the enhancement will be 8.25 lakh coils per month. The new facility in Coimbatore will be operational in 18 months time.

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