Voltas slips 9% on profit booking after Q4 results disappoints Street

Voltas stock price update: The domestic projects continues to grow its order pad and retain a positive outlook given the increased infrastructure spending in the country, the company said

Shares of Voltas slipped 9 per cent to Rs 1,261.65 on the BSE in Wednesday's intraday trade on profit booking after the company reported a disappointing set of earnings for the March quarter (Q4FY24).

Its profit after tax (PAT) declined 22.4 per cent year-on-year (Y-o-Y) to Rs 111 crore as against a PAT of Rs 143 crore in the year-ago quarter.

Voltas, the global air conditioning and engineering services provider of the Tata Group company, posted a revenue of Rs 4,257 crore; up 42 per cent Y-o-Y, led by 47per cent/44 per cent/10 per cent growth in the Electro-Mechanical Projects and Services (EMPS)/ Unitary Cooling Products (UCP)/ Engineering Products and Services (EPS) segments.

However, earnings with earnings before interest, taxes, depreciation, and amortisation (Ebitda) declined 13 per cent Y-o-Y to Rs 190 crore, due to continued higher losses in the EMPS segment.

The overall UCP segment revenue grew by 44 per cent Y-o-Y to Rs 2,955 crore on account of a better product mix enhancement approach.

The Domestic Projects business with a presence in MEP, water, electrical & solar has grown by 38 per cent Y-o-Y due to a healthy carry forward order book position. Timely execution, focus on certification, and other related project management initiatives have resulted in a robust bottom-line growth over the previous year.

The Domestic Projects continues to grow its order pad and retain a positive outlook given the increased infrastructure spending in the country, the company said.

At 09:44 am, Voltas was trading 6 per cent lower at Rs 1,301, as compared to 0.27 per cent decline in the S&P BSE Sensex. With today’s fall, the stock price of Voltas has declined 16 per cent from its 52-week high level of Rs 1,500 touched on May 2, 2024. In the past five months, the stock had zoomed 81 per cent.

The company's UCP business is seeing robust revenue growth supported by favorable weather conditions and its strong presence in this segment. However, the margin missed our estimates. Further, continued higher losses in the EMPS segment dragged down overall performance," said Motilal Oswal Financial Services in the result update.