Voltas Ltd's Q4FY18 consolidated net profit (excluding exceptional items) declines 2.36% yoy to Rs195.58cr : Misses Estimates

India Infoline Research Team | May 17, 2018 17:03 IST

The company’s consolidated revenue stood at Rs2,048.38cr, up 0.65% yoy.

Voltas Ltd Q4FY18

Consolidated Results Q4FY18: (Rs. in cr)

Q4FY18 YoY (%)
Revenue 2,048.38 0.7
EBITDA 253.16 14.5
EBITDA Margin (%) 12.4 149
Net Profit (adjusted) 195.58 [2.4]
***EBITDA margin change is bps
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Last updated on

07-May-2018

Voltas’ consolidated revenue was up by mere 0.7% yoy to Rs2,048.4cr from Rs2,035.1cr in Q4FY17 impacted by poor performance of the Engineering products and services (EPS) and Unitary Cooling Products (UCP) segments. EBITDA grew by 14.5% yoy to Rs253.2cr from ~Rs221.2cr in Q4FY17. EBITDA increase was a result of decline in other expenses and employee cost by 16.4% and 3.4% yoy during the quarter. Thus, EBITDA margin improved by 149bps from 10.9% in Q4FY17 to 12.4% in Q4FY18. Net profit during the quarter decreased by 2.4% yoy to Rs195.6cr as compared to Rs200.3cr in Q4FY17.

• Electro-mechanical projects and services' (EMPS) sales for the quarter was at Rs873.5cr (up 5.4% yoy) as compared to Rs829cr in the corresponding quarter last year. EBIT margin in the segment increased from 5.7% in Q4FY17 to 7.6% in Q4FY18. The higher profitability is a result of better quality of orders and efficient execution both in domestic and international business. 

• Order Book of the EMPS segment stood higher at Rs5,062cr (up 17.2% yoy) at Q4FY18 end.

• Despite being a peak season, UCP sales were down by 2% yoy to Rs1,064.5cr. This maybe on account of higher inventory build-up by dealers in Q3FY18 itself.  EBIT margin, however, increased from 16.4% in Q4FY17 to 17.2.0% in Q4FY18.

• Voltas continues to be the market leader in room air-conditioners with a market share of over 22% in FY18. In UCP, Voltas has also ramped up its product mix to gain market share in the inverter AC segment.

• EPS segment’s revenue was down 21.9% yoy to Rs83.4cr, while EBIT margin increased from 24.2% in Q4FY17 to 29.8% in Q4FY18 owing to favourable mix.


Technical View:

Voltas Ltd is currently trading at Rs. 583.55, down by 7.6 points or 1.29% from its previous closing of Rs. 591.15 on the BSE.
The scrip opened at Rs. 595 and has touched a high and low of Rs. 597 and Rs. 580.80 respectively. So far 18,63,081 (NSE+BSE) shares were traded on the counter. The stock is currently trading above its 50 DMA.


***Note: This is a NSE Chart

 

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