Voltas traded in the red on October 20 as the air conditioner maker failed to meet net profit and EBITDA margin estimates for the quarter that ended September. Voltas reported a consolidated net profit of Rs 36 crore, compared to the net loss of Rs 6 crore in the corresponding period of the previous fiscal.

However, a poll conducted by CNBCTV-18 predicted a profit of Rs 98 crore and a consolidated revenue of Rs 2292.8 crore, up 29.7 percent YoY. EBITDA gained 30.2 percent YoY to Rs 70.4 crore.

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As of 11.03 am, Voltas stock was trading 0.44 percent lower on the NSE at Rs 835.15 apiece.

The EBITDA margin declined to 3.1 percent, down 270 bps YoY. Motilal Oswal had predicted an EBITDA margin of 5.1 percent. Nomura attributed the key drag to the business of the project, “which continued to be impacted due to provisions on account of delayed collection in overseas projects”.

UCP segment

The Unitary Cooling Products (UCP) business relatively performed better amid an erratic monsoon and weaker consumer sentiment toward discretionary spending in a generally lean quarter, said Nomura.

The volume growth in UCP was around 20 percent YoY and the company had an exit-market share of 19.5 percent in August 2023. The firm has sustained its leadership position in the overall Room Air Conditioners (RAC) segment, added Prabhudas Lilladher.

Outlook

Nomura factored in 15 percent revenue CAGR for the UCP business over FY23-26. The global brokerage maintained its ‘neutral’ rating on the scrip, with a target price of Rs 920 apiece. UBS also issued a ‘neutral call’ with a target price of Rs 885 per share, as the brokerage said that project losses led to a sharp miss of 70 percent in profit estimates.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Voltas traded in the red on October 20 as the air conditioner maker failed to meet net profit and EBITDA margin estimates for the quarter that ended September. Voltas reported a consolidated net profit of Rs 36 crore, compared to the net loss of Rs 6 crore in the corresponding period of the previous fiscal.

However, a poll conducted by CNBCTV-18 predicted a profit of Rs 98 crore and a consolidated revenue of Rs 2292.8 crore, up 29.7 percent YoY. EBITDA gained 30.2 percent YoY to Rs 70.4 crore.

Follow our market blog for all the live action

As of 11.03 am, Voltas stock was trading 0.44 percent lower on the NSE at Rs 835.15 apiece.

The EBITDA margin declined to 3.1 percent, down 270 bps YoY. Motilal Oswal had predicted an EBITDA margin of 5.1 percent. Nomura attributed the key drag to the business of the project, “which continued to be impacted due to provisions on account of delayed collection in overseas projects”.

UCP segment

The Unitary Cooling Products (UCP) business relatively performed better amid an erratic monsoon and weaker consumer sentiment toward discretionary spending in a generally lean quarter, said Nomura.

The volume growth in UCP was around 20 percent YoY and the company had an exit-market share of 19.5 percent in August 2023. The firm has sustained its leadership position in the overall Room Air Conditioners (RAC) segment, added Prabhudas Lilladher.

Outlook

Nomura factored in 15 percent revenue CAGR for the UCP business over FY23-26. The global brokerage maintained its ‘neutral’ rating on the scrip, with a target price of Rs 920 apiece. UBS also issued a ‘neutral call’ with a target price of Rs 885 per share, as the brokerage said that project losses led to a sharp miss of 70 percent in profit estimates.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.