Voltas

Voltas - Global air conditioning and engineering Services Company has reported another pale set of operational results in the quarter ended September 11. OPM witnessed a sharp crash to 2.4% against 10.1% in the corresponding previous year. All the three segments particularly major - Electro Mechanical Projects and Services (EMPS) has reported sharp fall in profit by 91% to meager Rs 4.98 crore and Unitary Cooling Products (UCP) segment profit fell by 78% to Rs 6.14 crore. Engineering Products and Services (EPS) segment has also reported de growth in the profits.

Quarterly Performance:

For the quarter ended September 11, the company has reported marginal 5% increase in the total income from operations at Rs 1121.61 crore, thanks to 8% increase in the revenues from EMPS segment at Rs 762.32 crore which constitutes 69% of the total revenues. On the other hand revenues from EPS and UCP segments de grew 5% to Rs 120.22 crore and 8% to Rs 211.01 crore respectively. Revenues from UCP constituted 19% and that of EPS held reaming 11% of the total revenues.

However, Margins of all the segments have eroded resulting OPM to crash to 2.4% in quarter under review against 10.1% in the corresponding previous year. Segment margins of EMPS segment fell sharply to meager 0.7% against 8.2% a year ago. On the other hand UCP business margins have also eroded to 2.9% against 12.3% a year ago. EPS segment margins have declined to 14.8% against 20.9% a year ago. Resultantly Operating profit fell sharply 75% to Rs 27.28 crore. The other income increased 21% to Rs 22.43 crore and led EBIDT down 61% to Rs 49.71 crore.

The Interest cost surged up whooping 137% to Rs 7.09 crore and that of depreciation jumped 66% to Rs 8.89 crore and pulled further down PBT before EO by 71% to Rs 33.73 crore. At segment front, profits from EMPS segment has reported sharp fall by 91% to marginal Rs 4.98 crore while that of UCP business declined 78% to Rs 6.14 crore and EPS slipped by 33% to Rs 17.78 crore.

Further EO income has inched up 41% to Rs 24.98 crore, thanks to 37% jump in the Profit on sale of property and surrender of tenancy rights and Nil expense on VRS scheme and impairment of fixed assets. Further 61% dip in tax expenses at Rs 17.68 crore has led PBT down 55% to Rs 41.03 crore. Finally after accounting Minority Interest income of Rs 0.84 crore, Net Profit has declined 55% to Rs 41.87 crore.

Half Yearly Performance

For the half year ended September 11, Voltas has reported 6% decline in the Net Profit at Rs 173.66 crore over flat total income from operations at Rs 2470.03 crore. OPM slipped 400 bps to 5.5% and pulled Operating profit down 42% to Rs 136.17 crore. More than 6 fold rise in the EO income at Rs 106.45 crore had moderated growth in the bottom line.

Voltas: Financial Performance

Voltas: Segment Results