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Voltas slips after poor Q4 numbers

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Capital Market
Last Updated : May 21 2013 | 4:00 PM IST

The result was announced after market hours on Monday, 20 May 2013.

Meanwhile, the BSE Sensex was up 8.01 points, or 0.04%, to 20,231.99.

On BSE, 4.25 lakh shares were traded in the counter as against an average daily volume of 2.38 lakh shares in the past one quarter.

The stock hit a high of Rs 91.85 and a low of Rs 88.20 so far during the day. The stock had hit a 52-week high of Rs 138.50 on 27 September 2012. The stock had hit a 52-week low of Rs 73.25 on 22 March 2013.

The stock had outperformed the market over the past one month till 20 May 2013, rising 13.72% compared with the Sensex's 6.35% rise. The scrip had also outperformed the market in past one quarter, gaining 3.65% as against Sensex's 2.96% rise.

The small-cap company has an equity capital of Rs 33.09 crore. Face value per share is Re 1.

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On a consolidated basis, net profit rose 28.2% to Rs 207.78 crore on 6.6% increase in net sales to Rs 5514.06 crore in the year ended March 2013 (FY 2013) over the year ended March 2012 (FY 2012).

Voltas said in a statement that due to difficult global economic conditions and uncertainties, coupled with high interest rates, inflation, increase in input costs, most of the businesses were adversely impacted.

Electro-mechanical projects and services segment's revenue rose to Rs 3200 crore in FY 2013 as compared to Rs 3183 crore in FY 2012. However, profitability of this segment, especially on account of overseas projects, was significantly impacted and fell at Rs 51 crore in FY 2013 as compared to Rs 172 crore in FY 2012.

The domestic projects business also had its share of challenges primarily on account of external factors which has impacted both, turnover and profitability of this business. Despite the subdued investment climate, the domestic electromechanical projects business was able to secure orders at reasonable gross margins/profitability, Voltas said in a statement.

The order book of the electro-mechanical projects and services segment stood at Rs 3719 crore as at 31 March 2013 as compared to Rs 4292 crore as at the end of the previous year, the company said.

In engineering products and services segment, both textile machinery and mining & construction businesses have performed well on the strength of fresh orders, new offerings and their customer-centric approach. The fate of this business is intertwined, and gets impacted, by changes in interest rates, availability of electricity and government policies. Revenues and results of this segment were at Rs 431 crore and Rs 84 crore, respectively, as compared to Rs 412 crore and Rs 69 crore, respectively, last year, the company said in a statement.

Meanwhile, despite intense competition, unfavourable climatic conditions and subdued consumer sentiments, Voltas sustained its No.1 market position in the unitary cooling products business for most part of the year. Though the air conditioning (AC) industry witnessed de-growth in sales volumes in 2012-13, the segment's revenue increased by 19% and was Rs 1836 crore for the year under review as compared to Rs 1539 crore last year. Profit was also higher at Rs 173 crore as compared to Rs 130 crore last year, Voltas said.

The board of Voltas has recommended dividend of Rs 1.60 per share of Re 1 each (160%) for the year ended 31 March 2013.

Voltas is an engineering solutions provider and project specialist. It offers engineering solutions for a wide spectrum of industries in areas such as heating, ventilation and air conditioning, refrigeration, electro-mechanical projects, textile machinery, mining and construction equipment, materials handling equipment, water management & treatment, cold chain solutions, building management systems, and indoor air quality.

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First Published: May 21 2013 | 2:42 PM IST

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