Veto Switchgears Reports Mixed Q1 Results: Revenue Up, Profits Down
Veto Switchgears and Cables Limited reported mixed Q1 financial results. Standalone total income increased by 4.01% to Rs. 434.15 lakhs, but net profit declined by 13.76% to Rs. 372.12 lakhs. Consolidated total income grew by 5.89% to Rs. 648.04 lakhs, while net profit fell by 29.67% to Rs. 343.21 lakhs. The company maintained positive profit margins despite the decline in profitability.
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Veto Switchgears and Cables Limited , a player in the electrical equipment sector, has reported mixed financial results for the first quarter. The company saw an increase in revenue but experienced a decline in profitability, according to its latest financial report.
Standalone Performance
On a standalone basis, Veto Switchgears demonstrated growth in its total income, which rose to Rs. 434.15 lakhs from Rs. 417.43 lakhs in the corresponding quarter of the previous year. This represents a year-over-year increase of 4.01%.
However, the company's net profit after tax on a standalone basis saw a decline. It dropped to Rs. 372.12 lakhs from Rs. 431.48 lakhs in the same period last year, marking a decrease of 13.76%.
Consolidated Results
The consolidated financial results paint a similar picture of revenue growth coupled with profit decline. Veto Switchgears' consolidated total income increased to Rs. 648.04 lakhs from Rs. 612.01 lakhs year-over-year, showing a growth of 5.89%.
Despite the revenue growth, the consolidated net profit after tax fell to Rs. 343.21 lakhs from Rs. 488.01 lakhs in the corresponding quarter of the previous year. This represents a significant decrease of 29.67% in consolidated net profit.
Financial Highlights
| Metric | Value | Change |
|---|---|---|
| Standalone total income | Rs. 434.15 lakhs | up 4.01% YoY |
| Standalone net profit | Rs. 372.12 lakhs | down 13.76% YoY |
| Consolidated total income | Rs. 648.04 lakhs | up 5.89% YoY |
| Consolidated net profit | Rs. 343.21 lakhs | down 29.67% YoY |
| Equity share capital | Rs. 1,911.50 lakhs | unchanged |
Analysis
While Veto Switchgears managed to grow its revenue both on standalone and consolidated bases, the company faced challenges in maintaining its profitability. The disparity between revenue growth and profit decline suggests increased costs or operational challenges during the quarter.
It's worth noting that despite the profit decline, the company has maintained positive profit margins. The consolidated performance outpaced the standalone results in terms of revenue growth, indicating potentially stronger performance in the company's subsidiaries or joint ventures.
The unchanged equity share capital at Rs. 1,911.50 lakhs suggests that the company did not issue new shares during this period.
Historical Stock Returns for Veto Switchgear Cable
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -9.53% | -11.07% | -12.03% | +8.44% | -29.75% | +150.77% |
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