Capitaline

Results 05-May-22

Analysis

Voltas

Net down 23% on weak operating show

Consolidated net sales (including other operating income) of Voltas for the quarter ended Mar 2022, has increased 0.56% to Rs 2666.58 crore. Operating profit margin has declined from 12.47% to 9.79%, leading to 21.08% decline in operating profit to Rs 261.01 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 51.24% to 50.36%. Purchase of finished goods cost rose from 22.77% to 26.12%. Employee cost increased from 5.61% to 6.19%. Other expenses fell from 7.71% to 7.23%. Other income rose 17.80% to Rs 37.2 crore. PBIDT fell 17.69% to Rs 298.21 crore. Provision for interest rose 20.06% to Rs 12.51 crore. PBDT fell 18.81% to Rs 285.7 crore. Provision for depreciation rose 6.54% to Rs 9.45 crore. Profit before tax down 19.47% to Rs 276.25 crore. Share of profit/loss was 30.13% lower at Rs -28.85 crore. Provision for tax was expense of Rs 64.69 crore, compared to Rs 82.13 crore. Effective tax rate was 26.15% compared to 25.60%. Minority interest decreased 98.99% to Rs 0.01 crore. Net profit attributable to owners of the company decreased 23.15% to Rs 182.70 crore.

Sales of Electro - Mechanical Projects and services segment has gone down 20.98% to Rs 691.81 crore (accounting for 26.27% of total sales). Sales of Engineering Products and services segment has gone up 26.43% to Rs 123.50 crore (accounting for 4.69% of total sales). Sales of Unitary Cooling Products for comfort and commercial use segment rose 9.89% to Rs 1,818.41 crore (accounting for 69.04% of total sales).

Profit before interest, tax and other unallocable items (PBIT) has slumped 20.23% to Rs 280.29 crore. PBIT of Electro - Mechanical Projects and services segment fell 15.92% to Rs 47.57 crore (accounting for 16.97% of total PBIT). PBIT of Engineering Products and services segment rose 20.68% to Rs 40.79 crore (accounting for 14.55% of total PBIT). PBIT of Unitary Cooling Products for comfort and commercial use segment fell 26.46% to Rs 191.93 crore (accounting for 68.48% of total PBIT).

PBIT margin of Electro - Mechanical Projects and services segment rose from 6.46% to 6.88%. PBIT margin of Engineering Products and services segment fell from 34.60% to 33.03%. PBIT margin of Unitary Cooling Products for comfort and commercial use segment fell from 15.77% to 10.55%. Overall PBIT margin fell from 13.37% to 10.64%.

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Yearly performance

Net sales (including other operating income) of Voltas has increased 5.01% to Rs 7934.45 crore. Sales of Electro - Mechanical Projects and services segment has gone down 14.18% to Rs 2,470.49 crore (accounting for 31.51% of total sales). Sales of Engineering Products and services segment has gone up 35.93% to Rs 488.66 crore (accounting for 6.23% of total sales). Sales of Unitary Cooling Products for comfort and commercial use segment rose 15.73% to Rs 4,881.92 crore (accounting for 62.26% of total sales).

Profit before interest, tax and other unallocable items (PBIT) has jumped 9.94% to Rs 797.07 crore. PBIT of Electro - Mechanical Projects and services segment rose 365.64% to Rs 125.77 crore (accounting for 15.78% of total PBIT). PBIT of Engineering Products and services segment rose 38.13% to Rs 157.90 crore (accounting for 19.81% of total PBIT). PBIT of Unitary Cooling Products for comfort and commercial use segment fell 12.04% to Rs 513.40 crore (accounting for 64.41% of total PBIT).

PBIT margin of Electro - Mechanical Projects and services segment rose from 0.94% to 5.09%. PBIT margin of Engineering Products and services segment rose from 31.80% to 32.31%. PBIT margin of Unitary Cooling Products for comfort and commercial use segment fell from 13.84% to 10.52%. Overall PBIT margin rose from 9.72% to 10.17%.

Operating profit margin has jumped from 8.49% to 8.59%, leading to 6.27% rise in operating profit to Rs 681.55 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 47.23% to 49.70%. Purchase of finished goods cost fell from 25.59% to 25.18%. Employee cost decreased from 8.27% to 7.61%. Other expenses fell from 10.09% to 9.10%.

Other income rose 0.17% to Rs 189.19 crore. PBIDT rose 4.88% to Rs 870.74 crore. Provision for interest fell 1.07% to Rs 25.87 crore.

PBDT rose 5.07% to Rs 844.87 crore. Provision for depreciation rose 9.94% to Rs 37.26 crore.

Profit before tax grew 4.86% to Rs 807.61 crore. Share of profit/loss was 80.93% lower at Rs -110.31 crore. Provision for tax was expense of Rs 191.3 crore, compared to Rs 180.42 crore. Effective tax rate was 27.43% compared to 25.44%.

Minority interest decreased 47.67% to Rs 1.91 crore. Net profit attributable to owners of the company decreased 4.01% to Rs 504.09 crore.

Other developments

Promoters’ stake was 30.30% as of 31 March 2022 ,compared to 30.30% as of 31 March 2021 .

Cash flow from operating activities increased to Rs 584.23 crore for year ended March 2022 from Rs 556.11 crore for year ended March 2021. Cash flow used in acquiring fixed assets during the year ended March 2022 stood at Rs 48.16 crore, compared to Rs 20.82 crore during the year ended March 2021.

Voltas : Consolidated Results

	Quarter ended			Year ended
Particulars	202203	202103	Var.(%)	202203	202103	Var.(%)
Net Sales (including other operating income)	2,666.58	2,651.66	0.56	7,934.45	7,555.78	5.01
OPM (%)	9.79	12.47	-268 bps	8.59	8.49	10 bps
OP	261.01	330.73	-21.08	681.55	641.36	6.27
Other Inc.	37.20	31.58	17.80	189.19	188.86	0.17
PBIDT	298.21	362.31	-17.69	870.74	830.22	4.88
Interest	12.51	10.42	20.06	25.87	26.15	-1.07
PBDT	285.70	351.89	-18.81	844.87	804.07	5.07
Depreciation	9.45	8.87	6.54	37.26	33.89	9.94
PBT	276.25	343.02	-19.47	807.61	770.18	4.86
Share of Profit/(Loss) from Associates	-28.85	-22.17	-30.13	-110.31	-60.97	-80.93
PBT before EO	247.4	320.85	-22.89	697.3	709.21	-1.68
EO Income	0	0	-	0	0	-
PBT after EO	247.4	320.85	-22.89	697.3	709.21	-1.68
Taxation	64.69	82.13	-21.23	191.3	180.42	6.03
PAT	182.71	238.72	-23.46	506	528.79	-4.31
Minority Interest (MI)	0.01	0.99	-98.99	1.91	3.65	-47.67
Net profit	182.7	237.73	-23.15	504.09	525.14	-4.01
P/(L) from discontinued operations net of tax	0	0	-	0	0	-
Net profit after discontinued operations	182.7	237.73	-23.15	504.09	525.14	-4.01
EPS (Rs)*	5.52	7.18	-23.15	15.23	15.87	-4.01

* EPS is on current equity of Rs 33.09 crore, Face value of Rs 1, Excluding extraordinary items.
# EPS is not annualised
bps : Basis points
EO : Extraordinary items
Figures in Rs crore
Source: Capitaline Corporate Database

Voltas : Consolidated Segment Results

	Quarter ended				Year ended
	% of (Total)	202203	202103	Var.(%)	% of (Total)	202203	202103	Var.(%)
Sales
Electro - Mechanical Projects and services	26.27	691.81	875.47	-20.98	31.51	2,470.49	2,878.60	-14.18
Engineering Products and services	4.69	123.50	97.68	26.43	6.23	488.66	359.49	35.93
Unitary Cooling Products for comfort and commercial use	69.04	1,818.41	1,654.69	9.89	62.26	4,881.92	4,218.46	15.73
Total Reported Sales	100.00	2,633.72	2,627.84	0.22	100.00	7,841.07	7,456.55	5.16
Less: Inter segment revenues		0.00	0.00	-		0.00	0.00	-
Net Sales	100.00	2,633.72	2,627.84	0.22	100.00	7,841.07	7,456.55	5.16
PBIT
Electro - Mechanical Projects and services	16.97	47.57	56.58	-15.92	15.78	125.77	27.01	365.64
Engineering Products and services	14.55	40.79	33.80	20.68	19.81	157.90	114.31	38.13
Unitary Cooling Products for comfort and commercial use	68.48	191.93	260.99	-26.46	64.41	513.40	583.70	-12.04
Total PBIT	100.00	280.29	351.37	-20.23	100.00	797.07	725.02	9.94
Less : Interest		12.51	10.42	20.06		25.87	26.15	-1.07
Add: Other un-allcoable		-20.38	-20.10	-1.39		-73.90	10.34	PL
PBIT Margin(%)
Electro - Mechanical Projects and services		6.88	6.46	41.34		5.09	0.94	415.26
Engineering Products and services		33.03	34.60	-157.44		32.31	31.80	51.50
Unitary Cooling Products for comfort and commercial use		10.55	15.77	-521.79		10.52	13.84	-332.04
PBT	100.00	247.40	320.85	-22.89	100.00	697.30	709.21	-1.68

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