Electrical Equipment Stock Hits Upper Circuit After 228% Jump in Q4 Profit

Electrical equipment stock surged 20% on Thursday to ₹131, hitting the upper circuit after reporting a sharp rise in quarterly profit. The stock rallied following strong Q4 results and a dividend announcement.

The stock in focus is Veto Switchgears and Cables Ltd., a BSE- and NSE-listed company engaged in the manufacturing and sale of electrical products. Its portfolio includes wires and cables, LED lighting, CFLs, fans, switches, and electrical accessories.

With a presence across India and a growing customer base in infrastructure and retail sectors, Veto operates manufacturing units in Haridwar and has been in business since 1967. The company is known for catering to both industrial and residential markets, offering solutions under its own brand across various electrical categories.

Financial Performance

Veto Switchgears reported a consolidated net profit of ₹733.66 lakh for the quarter ended March 31, 2025, a substantial 228% increase year-on-year from ₹222.73 lakh reported in the same quarter last year. Revenue for the quarter also rose to ₹8,970.35 lakh, up from ₹8,302.74 lakh in Q4 FY24.

The strong earnings growth was driven by better operational efficiency, improved product mix, and controlled finance costs, allowing the company to expand margins despite only modest growth in revenue.

For the full year FY25, consolidated net profit stood at ₹2,181.96 lakh, up from ₹1,806.31 lakh in FY24, reflecting 21% annual profit growth. Total consolidated revenue came in at ₹30,292.75 lakh, holding steady compared to ₹30,482.75 lakh in the previous year.

On a standalone basis, Veto reported ₹2,152.41 lakh in profit for FY25 with total income of ₹22,266.20 lakh. While overall revenue growth was flat, the company maintained a focus on cost optimization and operational discipline to boost earnings.

The company’s total consolidated assets rose to ₹33,223.38 lakh as of March 31, 2025, from ₹30,619.23 lakh a year earlier. Reserves and surplus increased to ₹24,733.39 lakh, while borrowings remained manageable at ₹2,025.66 lakh.

Operating cash flow stood at ₹1,499.10 lakh for the year. The company continues to invest in capital expenditure and working capital needs while maintaining a stable financial structure.

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Product Segment Analysis

The company operates across three main business verticals:

• Lighting and Fittings: Contributed ₹14,436.68 lakh to FY25 revenue. Despite a slight dip from the previous year, this remains the largest segment.
• Wires and Cables: Accounted for ₹8,610.72 lakh in revenue, supported by steady demand in construction and infrastructure sectors.
• Accessories and Others: Generated ₹6,990.45 lakh in FY25, showing improvement over the previous fiscal year.

This diversified product base allows Veto to balance market cycles and drive steady operational performance across categories.

Future Outlook

During FY25, Veto acquired 55% stake in Veto Polytech Private Limited and 51% in VNS Appliances Private Limited, two newly incorporated subsidiaries. These investments are expected to support product diversification and vertical integration.

In addition to reporting robust results, the Board of Directors declared a final dividend of ₹1 per equity share, equivalent to 10% of the face value. This is subject to shareholder approval at the company’s upcoming Annual General Meeting.

The dividend announcement reflects management’s confidence in the business’s financial strength and was a key contributor to Thursday’s positive stock movement.