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Voltas hits fresh record high on restructuring plan of B2B business

In Q2FY21,Voltas reported a healthy performance with consolidated revenue grew by 13 per cent year-on-year to Rs 1,613 crore led by revenue growth in all three segments.

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Voltas | Buzzing stocks | Markets

SI Reporter  |  Mumbai 

Voltas House
The stock of the Tata Group consumer electronics company surpassed its previous high of Rs 768, touched on Friday, November 6, 2020

Shares of hit a fresh record high of Rs 772.50, up 2.5 per cent on the BSE in the intra-day trade on Monday, after the company said its board has given "in-principle" approval for restructuring of B2B businesses.

The stock of the Tata Group consumer electronics company surpassed its previous high of Rs 768, touched on Friday, November 6, 2020. In the past three months, the stock outpaced the market by surging 30 per cent, as against 11 per cent rise in the S&P BSE Sensex.

"The directors have, in order to facilitate better focus on B2e Products businesses of the Company, agreed "in-principle" a proposal for restructuring of B2B businesses, comprising domestic projects business relating to MEP/HVAC and water projects and contracts, mining and construction equipment (M&CE) business and textile machinery division (TMD) by transferring them to a 100 per cent wholly owned subsidiary company - 'Rohini Industrial Electricals Limited (RIEL)', said in a regulatory filing.

The name of RIEL would also be appropriately changed to suitably represent and reflect these businesses. While the transfer of the aforesaid businesses would be on a slump sale basis as a going concern, the mode of transfer and other requirements are being looked into and necessary action and requisite approvals, as may be required would be taken, it said.

Meanwhile, reported a healthy performance in September quarter (Q2FY21) consolidated revenue grew by 13 per cent year-on-year (YoY) to Rs 1,613 crore led by revenue growth in all three segments. However, EBITDA (earnings before interest, taxes, depreciation, and amortisation) margin down by 140 basis points YoY to 6.1 per cent, due to lower profitability from project business. Profit after tax declined 26 per cent YoY to Rs 80 crore mainly due to lower margin and decline in other income.

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First Published: Mon, November 09 2020. 12:19 IST
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