Voltas reports over 46% rise in Q3 net profit at Rs 129 crore, beats estimates

Air conditioner maker Voltas Ltd on Friday reported strong earnings for the third quarter of fiscal 2021 with an over 46 percent rise in net profit, beating Street estimates.

Voltas’ consolidated net profit in Q3FY21 rose 46.3 percent to Rs 128.64 crore as against Rs 87.95 crore in the same period of last fiscal.

The company’s consolidated revenue from operations during the quarter increased 33.6 percent to Rs 1,994.6 crore from Rs 1,492.5 crore, YoY.

Net profit and revenue were ahead of CNBC-TV18 Analysts’ poll estimates of Rs 97.5 crore and Rs 1,678 crore, respectively.

The company’s operational performance also beat estimates. EBITDA during the quarter was up 49.6 percent at Rs 145.9 crore from Rs 97.5 crore, while EBITDA margin expanded by 80 bps to 7.3 percent from 6.5 percent, YoY.

“The Cooling Products business made a good recovery, post easing of the lockdown situation and achieved a record overall volume growth of 40 percent, contributed by 43 percent increase in the sales volume of Room Air conditioners (ACs), 100 percent in Commercial Refrigeration Products and 11 percent in Air Coolers,” Voltas said in a regulatory filing.

Cooling Products segment revenue increased by 40 percent and was at Rs 840 crore as compared to Rs 601 crore in the corresponding quarter last year.

Voltas continues to be at No 1 position in ACs with a YTD market share of 26 percent in December 2020, the Tata Group company said.

Electro-Mechanical Projects and Services segment revenue for the quarter was higher by 26 percent at Rs 1,017 crore as compared to Rs 808, YoY.

Segment EBIT was lower at Rs 32 crore versus Rs 37 crore last year primarily due to conservative time-based provisions, amidst liquidity constraints on some of the legacy projects.

Order book of the segment was higher at Rs 7,275 crore as compared to Rs 7,024 crore in the corresponding quarter last year.

Engineering Products and Services segment revenue and EBIT for the quarter were at Rs 121 crore and Rs 32 crore as compared to Rs 83 crore and Rs 23 crore, respectively in the corresponding quarter last year.

The board of Voltas also approved the transfer of domestic Projects business to its subsidiary Universal MEP Projects & Engineering Services via slump sale. Cash consideration for this would be in the range of Rs 1,000-1,200 crore.

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