Leading engineering solutions provider from the Tata Group, Voltas today reported a 51 per cent increase in its consolidated net profit at Rs 385 crore compared to Rs 255 crore a year ago as large overseas projects helped the firm to improve its earnings.
"Our revenue increased through execution of large overseas projects. These included several prestigious projects in the Middle East and Singapore," Voltas Executive Vice-President M M Miyajiwala told reporters here today.
The overall carry-forward order book in the electro-mechanical segment stood at Rs 4,720 crore as on end March.
Total revenue rose by 10 per cent to Rs 4,830 crore compared to Rs 4,374 crore previous year. Earnings per share stood at Rs 11.51 compared to Rs 7.60.
The electro-mechanical projects and services segment revenue grew by 13 per cent on overseas projects such as the Burj Khalifa in Dubai, Formula1 track in Abu Dhabi, Etihad Towers Complex and the Sentosa Bay district cooling plant in Singapore. The segment has been a significant contributor to the company's overall profitability, Miyajiwala said.
But the slowdown in the commercial real estate sector in the domestic market had some impact on the finalisation of new electro-mechanical projects, he said. As part of its business strategy, it initiated aggressive steps to undertake more electro-mechanical projects in the industrial and infrastructure segments, he said.
Moreover, the company also increased its equity stake in Rohini Industrial Electricals, which has helped it to expand its offerings in the domestic electricals sector, Miyajiwala said.
Room AC sales increased by 30 per cent, while refrigeration products grew by 25 per cent during the year. "The segment has become a strong contributor to the company's profitability and continues to sustain robust growth in the current season," he said.
Voltas has also signed a MoU with Mustafa Sultan Enterprises, Muscat, Oman for joint ventures to undertake electro-mechanical projects in the Sultanate of Oman. This JV would facilitate Voltas' entry in MEP segment in Oman. Volats will hold 65 per cent by Voltas and balance 35 per cent by Mustafa Sultan Group. Upon allotment of shares, the joint venture company would become a subsidiary of Voltas.
The new joint venture is expected to be operational some time from next month, he said.
