Voltas Q2 PAT drops 26% to Rs 78 cr

Voltas reported 26.4% decline in consolidated net profit to Rs 78.35 crore on 12.2% rise in income from operations to Rs 1587.55 crore in Q2 FY21 over Q2 FY20.

On the segmental front, revenue from Unitary Cooling Products for Comfort and Commercial use was Rs 571.65 (up 8.8% YoY), revenue from Electro - Mechanical Projects and Services was Rs 927.80 crore (up 14.6% YoY) and revenue from Engineering Products and Services was Rs 93.29 crore (up 16.2% YoY) in the second quarter.

Profit before tax in Q2 September 2020 stood at Rs 114.99 crore, down by 23.5% from Rs 150.25 crore in Q2 September 2019. Total tax expense during the quarter declined by 17.8%year-on-year (YoY) to Rs 35.33 crore.

Voltas said that the unitary cooling products business acted smartly and swiftly and took advantage of the opportunities arising from easing of lockdown and achieved overall volume growth of 14% contributed by growth of 11% in room air conditioners, 20% in commercial refrigeration products and 28% in air coolers. Voltas continues to be the market leader and has sustained its number one position in room air conditioner business and further improved its market share to 26.8% in August 2020.

It further said that the fall in the profit of the electro-mechanical projects division was primarily due to conservative time based provisions, amidst liquidity constraints on some of the old legacy projects. Carry forward order book of the segment was higher at Rs 6852 crore as compared to Rs 6567 crores in the corresponding quarter last year.

Voltas is India's largest air conditioning company, and one of the world's premier engineering solutions providers and project specialists.

The scrip rose 1.83% to Rs 754.10 on the BSE. It traded in the range of 734 and 764.90 so far during the day.

On a year-to-date (YTD) basis, the stock has gained 14.67% while the benchmark S&P BSE Sensex added 1.36% during the same period.

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