Voltas Q1 profit rises 1.4%; EMP, UCP drag revenue 9%

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Moneycontrol Bureau

Air conditioning company Voltas’s Q1 earnings missed analysts' estimates on topline, bottomline and operational front but margin met forecast. Consolidated net profit in Q1 increased 1.4 percent year-on-year to Rs 110.5 crore, impacted by lower revenue and operational performance.

Profit was estimated at Rs 119 crore on revenue of Rs 1,837 crore for the quarter, according to analysts polled by CNBC-TV18.

Revenue declined 9 percent to Rs 1,598.3 crore on lower growth across segments. Electro-mechanical projects and services segment revenue dropped 10.6 percent year-on-year to Rs 556 crore due to slow pace of execution of projects on account of sluggish environment, said the company in its filing.

Order book of the segment increased to Rs 4,039 crore, up 6.6 percent compared to Rs 3,789 crore in the corresponding quarter of last fiscal. The segment's earnings before interest and tax (EBIT) rose 70 percent to Rs 7.5 crore with margin flat at 1 percent.

Revenue from its engineering products and services segment slipped 37 percent to Rs 70 crore due to transition of some of the agency lines pertaining to mining business last year.

Unitary cooling products business was down 5 percent year-on-year to Rs 949 crore with EBIT falling 3 percent but margin remained unchanged at 12 percent.

Consolidated operating profit (earnings before interest, tax, depreciation and amortisation) fell 0.8 percent to Rs 131 crore but margin saw expansion of 70 basis points at 8.2 percent in the quarter ended June year-on-year against forecast of Rs 149 crore for operating profit and 60 basis points expansion for margin.

Voltas has received an exceptional gain of Rs 10.6 crore during the quarter due to profit on sale of investments.

Shares of Voltas closed at Rs 298.80, down Rs 7.20, or 2.35 percent on the Bombay Stock Exchange.Posted by Sunil Shankar Matkar