>VOLTAS

Voltas - Global air conditioning and engineering Services Company has reported 40% decline in the consolidated Net profit to Rs 79.12 crore over 20% growth in the total income from operations to Rs 1616.82 crore. While all the three segments of the company have reported growth in revenues, UCP business has reported highest growth in revenues but steepest decline in segment margins. UCP business constituted 47% of total revenues and 54% of segment profits for the quarter.

OPM worsened 240bps to 5.8% which led to 15% de-growth in operating profits to Rs 93.91 crore and after meager EO benefit of Rs 1.11 crore against Rs 81.47 crore, PBT after EO declined 42% to Rs 110.57 crore. Decline in effective tax rate by 193 bps to 28.6% prevented further fall in the Net Profit.

Order book of EMPS business increased 0.5% to Rs 4574 crore at end of June 12 against Rs 4553 crore in the corresponding previous period.

Quarterly Performance

For the quarter ended June 12, the company has reported 20% growth in the consolidated total income from operations to Rs 1616.82 crore, as all the three segments have reported rise in the revenues. Revenues from Major – Electro Mechanical Projects and Services (EMPS) business grew 10% to Rs 741.3 crore and that of Unitary cooling products (UCP) business grew 34% to Rs 754.39 crore and constituted 46% and 47% of the total revenues respectively. On other hand, least contributor to revenues – Engineering products and services (EPS) business rose 10% to Rs 106.55 crore and constituted 7% of the revenues.

At segment level, the segment margins of EMPS business at 4.5%, down 9bps while the UCP business has reported 293 bps dip at 8.4%. The EPS business has improved margins by 70 bps to 18.2%. On the expenses front, the raw materials consumed as % of sales net of stock adjustments inched up 1107 bps to 62.7%. On the flip side, purchase of traded goods and employee cost declined 977bps to 11.2%, 17bps to 10.4% respectively. OPM slipped 240bps to 5.8% and led Operating Profit at Rs 93.91 crore, down 15%. Other income inched up 107% to Rs 34.94 crore and led PBIDT marginally up 1% to Rs 128.85 crore.

Interest cost jumped up 43% to Rs 12.09 crore but depreciation slipped 29% to Rs 7.3 crore and led PBT before EO up 1% to Rs 109.46 crore. At the segment front, profit from EMPS business grew 7% to Rs 33.24 crore, EPS business grew 14% to Rs 19.38 crore but UCP business declined 1% to Rs 63.21 crore.

The company has accounted 99% dip in the EO income at Rs 1.11 crore during the quarter against Rs 81.47 crore (mainly on transfer of material handling division). Further, taxation slipped 46% to Rs 31.6 crore. After accounting Rs 0.15 crore of MI income against Rs 0.41 crore and nil share of associates against loss share of Rs 0.05 crore, Net Profit was lower by 40% to Rs 79.12 crore.

On the standalone front, the company has reported 49% dip in the Net Profit at Rs 64 crore and 21% increase in the net sales at Rs 1674.42 crore.

Yearly Performance

For the year ended March 12, the company has reported 55% dip in the Net Profit at Rs 162.06 crore over flat growth in the consolidated total income from operations at Rs 5185.74 crore. Operating margins declined sharply 240 bps to 6.5% owing to pressure from all the segment margins. High interest rates, inflation and price rise in the raw materials and components had an adverse impact on operating profit at Rs 336.47 crore. After EO and charge of onerous contract, PBT was down 58% to Rs 219.13 crore.

On the standalone front, the company has posted 57% decline in Net Profit at Rs 152 crore over marginal 1% increase in the Net sales at Rs 5161 crore


RISH TRADER