Voltamp: Power-driven by power

STOCK IN THE NEWS

The Voltamp Transformers scrip was up 23.27 per cent last week and closed at Rs 978.35. The trading volumes jumped manifold from 1.01 lakh shares to 30.15 lakh shares.

In the first quarter ended June 2007, the company achieved a turnover of Rs 153.54 crore, while the net profit for the quarter was Rs 17.03 crore. The company made a public offer at Rs 345 a share during the fourth quarter of 2006-07, and hence the comparable financial performance is not available.

The company is one of the leading players in the power, industrial and dry type transformer segments. Unlike other transformer makers, its focus is on the non-SEB industrial segment, which has enabled the company to preserve profitability on a consistent basis.

According to a Kotak Securities research, the company has maintained healthy margins as products are customised to client requirements, enabling it to pass on the raw material price increases.

The company has always maintained some spare capacity to take short-delivery orders, wherein realisations are better. Voltamp's top ten customers include large EPC contractors like ABB, Siemens, L&T, and Suzlon, among others.

Going by the current order backlogs of these equipment majors, a healthy order flow can be expected for VTL over the next two years.