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Dolat Capital: Voltas Posts Good Q1; Strengthens Market Leadership

Dolat Capital: Voltas Posts Good Q1; Strengthens Market Leadership

Employees work on the indoor units of split system air conditioners on an assembly line a factory in Rajasthan. (Photographer Prashanth Vishwanathan/Bloomberg)
Employees work on the indoor units of split system air conditioners on an assembly line a factory in Rajasthan. (Photographer Prashanth Vishwanathan/Bloomberg)

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Dolat Capital Report

While Voltas Ltd. saw Q1 FY21 sales fall 51% YoY to Rs 13 billion, Ebitda fall 77% YoY at Rs 668 million, margins fall 583 basis points to 5.1% and profit after tax fall 51% YoY at Rs 818 million, the air conditioner performance posted a lower decline than peers with strong 15% margins.

The impact on profitability was mainly due to slowdown in projects business along with expected credit loss provisioning,

Unitary cooling segment managed to improve margins by 240 basis points in Q1 FY21 to 15.5% due to better mix with larger share of inverter ACs and lower ad costs; market share improved to 26.2% compared to 24.6% in Q4 FY20.

The projects segment remains slow in terms of execution and order intake due to limited liquidity and availability of labor concerns.

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Dolat Capital Voltas Q1FY21 Result Update.pdf

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