Voltas skid after dismal Q2 earnings

Voltas declined 1.64% to Rs 894 after the company reported a consolidated net loss of Rs 7.41 crore in Q2 FY23 as against a net profit of Rs 103.61 crore posted in Q2 FY22.

Revenue from operations rose 4.2% to Rs 1,739.12 crore in quarter ended 30 September 2022 from Rs 1,668.70 crore recorded in the corresponding quarter previous year.

Consolidated profit before exceptional items stood at Rs 119.67 crore in Q2 FY23, declining 16.17% from Rs 142.76 crore in Q2 FY22.

The company said that profit before and after tax was impacted during the current quarter due to provision made on an overseas project.

Total expenses rose 6.87% year on year to Rs 1,683.96 crore in Q2 FY23. Cost of materials jumped 22.63% to Rs 986.40 crore while employee benefits expenses were up by 13.51% to Rs 174.75 crore in Q2 FY23 over Q2 FY22.

The unitary cooling products segment revenue increased by 4.06% to Rs 1,047.71 crore as compared to Rs 1,006.80 crore in the corresponding quarter last year. Voltas continues to be the market leader and has sustained its No.1 position in Ihe overall Room Air conditioner business with its YTD August 2022 market share at 22.8%.

The electro-mechanical projects and services segment revenue was higher by 3%, at Rs 554 crores as compared 10 Rs 536 crore in the corresponding quarter last year. Segment Result before exceptional loss was at Rs 14 crore as compared to Rs 11 crore last year. Segment results after exceptional items reported loss at Rs 92 crore. Carry forward order book of the segment was at Rs 5,976 crore as compared to Rs 5,803 crores in the same period last year. Domestic projects booked orders of Rs 950 crore during the quarter as compared to Rs 100 crore in the corresponding quarter last year.

Engineering products and services segment continued to show improved performance. Segment revenue and result for the quarter were higher at Rs 137 crore and Rs 48 crore as compared to Rs 125 crore and Rs 39 crore, respectively in the corresponding quarter last year.

Voltas is the global air conditioning and engineering services provider of the Tata Group.

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