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Prabhudas Lilladher Report
Voltamp Transformers Ltd. reported weak quarterly performance below our estimates, owing to lower dispatches and steep rise in commodity price.
Steep rise in raw material prices like, copper, silicon steel, transformer oil etc. along with execution of fixed price legacy orders, impacted Ebitda margins (4% in Q1 FY22 versus 10-11% range).
With few legacy orders still in order book, management expects margin pressure to continue.
Order inflow came in at Rs 4 billion till date.
Enquiry pipeline remains healthy, though order finalisation is witnessing delay due to steep rise in commodity price and customers demanding reduction in quoted price.
Voltamp Transformers' management indicated that it continues to accept orders based on cost plus basis, protecting its margin profile.
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