Voltas Q4 Review - Ongoing Lockdowns Overshadow The Strong Operating Performance: Motilal Oswal
An employee inspects the indoor unit of a split system air conditioner on an assembly line in a factory in Rajasthan. (Photographer: Prashanth Vishwanathan/Bloomberg)

Voltas Q4 Review - Ongoing Lockdowns Overshadow The Strong Operating Performance: Motilal Oswal

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

Motilal Oswal Report

Voltas Ltd.’s Q4 FY21 earnings were 28% better than our expectation, led by better than expected margins in electro-mechanical projects and unitary cooling products (UCP) segment.

The company continues to be No. one player in room air conditioners, with a market share of 25.6%.

Favorable product mix aided UCP margin as the share of inverter ACs now constitutes 77% of split AC sales (64% in Q4 FY20).

Current valuations adequately factors in franchise strength of the UCP business.

We note that a large part of the margin surprise is due to cut in ad spends and low-cost inventory that was procured last year (~200 basis point advantage).

Click on the attachment to read the full report:

Motilal Oswal Voltas Q4FY21 Result Update.pdf

DISCLAIMER

This 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 author entity 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.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.