Voltas Q2 Results: Revenue Jumps 13%, Higher Expenses Dent Margin
Shares of Voltas Ltd. ended at a record high after second quarter results of India’s biggest AC maker surpassed analyst expectations on most parameters.
Revenue of the engineering solutions provider rose 13% over a year earlier to Rs 1,612.5 crore. That compares with Bloomberg consensus estimate of Rs 1,249.8 crore. Net profit fell 26% year-on-year to Rs 79.7 crore, in line with the consensus estimate of Rs 75.7 crore.
Earnings before interest, tax, depreciation or amortisation, or Ebitda, fell 8% from last year to Rs 98 crore but surpassed the estimate of Rs 68.3 crore.
Ebitda margin narrowed 140 basis points to 6.1% from 7.5% last year. The margin contracted as other expenses, which rose to Rs 178 crore this quarter, compared with Rs 140 crore during the same period in the previous fiscal.
Voltas Q2 Results 2020-21: Other Key Highlights
- Revenue from unitary cooling products, such as air conditioners, air coolers and refrigerators, rose 9% year-on-year to Rs 571.6 crore.
- Revenue from electromechanical projects rose 15% year-on-year to Rs 927.8 crore
- Engineering products and services revenue up 16% at Rs 93.3 crore
- The company remained the market leader in room air conditioner business and improved it to 26.8% in August 2020.
- Carry-forward order book of the EMP business was at Rs 6,852 crore from Rs 6,567 crore last year.
Of the 43 analysts that track Voltas, 32 have a 'Buy' recommendation, seven have a 'Hold', while the other four recommend a 'sell.' The stock is trading 10.1% higher than its 12-month Bloomberg consensus price target of Rs 676.1.
Shares ended 1.6% higher at an all-time high of Rs 753.3. The stock gained for the third straight day.