HDFC Securities: Voltas’ Beat In Room Air Conditioner Continues

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..HDFC Securities Report.Voltas Ltd.’s Q1 FY21 was slightly ahead of expectations as revenue/Ebitda declined by 52/77% YoY (our estimate 59/84%).Unitary cooling products (UCP) posted a revenue decline of 60% YoY (in-line) with room air conditioner (RAC) volume dip of 45% YoY (industry 49% dip).The company retained its market leadership (also in inverter) in RAC with market share expanding to 26.2%.Ebit margin was robust at 15.5% (our estimate 9.5%), led by product mix and cost-saving.Electromechanical project space (EMPS) revenue exceeded expectations, although increased provisioning and slow pace of execution led to the higher than-expected loss.The company’s performance in challenging times reinforces our long-term view.Market leadership in under penetrated RAC along with an entry in large home appliances gives multi-year growth visibility..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

HDFC Securities: Voltas’ Beat In Room Air Conditioner Continues

HDFC Securities: Voltas’ Beat In Room Air Conditioner Continues

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