About the Company:
Niche subsidiary of Tata Group is specialized in air conditioning and cooling technology. Voltas is also one of the most reputed engineering solution providers specializing in project management. The company has unparalleled expertise across Technology, Engineering, Construction, Cooling and Ventilation, Infrastructure Projects, Textile, Mining and Manufacturing sectors, making them one of the most trusted and reliable engineering solution providers.
QoQ & YoY Performance:
India’s largest engineering and technology solutions provider has declared the results for the second quarter of the fiscal year ending March 2020.
- QoQ Performance: Consolidated Net sales/ revenue of the company recorded to Rs. 1,415.02 crores, decreased by 46.54% in the September quarter of FY20. Total expenditure (excluding interest and depreciation expenses) is Rs. 1,316.06 crores, declined by 44.30%. EBITDA numbers plummet by 46.63%.
- YoY Performance: The Company has reported flattish growth in sales/revenue by 0.02% along with expenditure (excluding interest and depreciation expenses) of the company post with as little change by 0.25%. EBITDA numbers surged by 15.44%.
- Profitability of the company: Net profits of the company landed at Rs. 107.28 crores, dropped by 35.50% QoQ.
- Segmental Revenue: Electro-Mechanical projects and services revenue for the quarter was Rs. 809 crores compared to Rs. 901 crores in the corresponding quarter last year. While engineering products and services clocked revenue at Rs. 80 crores and Rs. 25 crores compared to Rs. 73 and 29 crores respectively, in the corresponding quarter last year.
As per Lokesh Sethia, SEBI Registered Research Analyst, the stock is trading at Rs.666.30 per share as of now. Voltas fail to impress the market as quarterly PAT and margins have fallen due to a drop in sales followed by deteriorating segmental revenue. Hence, we recommend it to ‘AVOID’.