Voltas Gives In-Principle Nod To Restructure B2B Unit
Voltas Ltd. has given in-principle approval to restructure its B2B arm to help the company focus more on its B2C unit.
Under the restructuring, the domestic projects business relating to electromechanical projects and heating ventilation and air-conditioning, water projects and contracts, mining and construction equipment business along with the textile machinery division, will be transferred to a fully-owned subsidiary, Rohini Industrial Electricals Ltd.
The transfer would be made on a slump sale basis and as a going concern, the company said in a statement.
Voltas reported its earnings during business hours on Friday.
While profit fell 26% year-on-year to Rs 79.7 crore, revenue rose 13% over a year ago to Rs 1,612.5 crore. Analysts tracked by Bloomberg had estimated profit at Rs 75.7 crore and revenue at Rs 1,249.8 crore.
Operating profit fell 8% from last year to Rs 98 crore but surpassed analysts’ estimate of Rs 68.3 crore.
Ebitda margin narrowed 140 basis points to 6.1% from last year as its other expense jumped by around 27.7% to Rs 178 crore during the same period.
Out of the 43 analysts that track Voltas, 32 have a ‘Buy’ recommendation, seven suggest ‘Hold’, while four ‘Sell’. The stock is trading 10.1% higher than its 12-month Bloomberg consensus price target of Rs 676.1.
Shares of Voltas ended trade 1.6% higher on Friday at an all-time high of Rs 753.3. The stock gained for the third straight day.