The shares of this large-cap company are set to be in focus after LIC sold a 2.1 percent stake in the company. In one year, the stock has delivered more than a 90 percent return to its shareholders.
Price Movement:
With a market capitalization of Rs. 52,080 crores, the shares of Voltas Ltd started Tuesday’s trading session on a flatter note at Rs. 1,582.55. During the trading session, the shares hit a low of Rs. 1,570.35, losing around 1 percent and are currently trading at Rs. 1,572 apiece.
What Happened:
According to the latest shareholding pattern, Domestic Institutional Investors decreased their stake marginally from 40.36 percent in the March quarter to 40.19 percent in the June quarter.
Specifically, LIC’s holding in Voltas decreased from 6.856 percent to 4.754 percent, a decline of 2.102 percent, between June 12 and August 12, at an average cost of Rs. 1,502.931.
On the other hand, Foreign Institutional Investors increased their stake from 14.71 percent during Q4FY24 to 15.08 percent in Q1FY25.
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Financials:
Looking at the company’s financial performance, the revenue increased by 17 percent from Rs. 4,192.3 crores during the March quarter to Rs. 4,903.91 crores in the June quarter. On the other hand, the net profits surged by 203 percent from Rs. 110.64 crores to Rs. 335 crores during the same period.
Comparing the same metrics on a YoY basis, the revenue zoomed by 47 percent from Rs. 3,335.34 crores during Q1FY24 to Rs. 4,903.91 crores in Q1FY25. In addition, the net profits magnified by around 159 percent from Rs. 129.42 crores to Rs. 335 crores during the same timeframe.
Segment Performance Updates:
The Unitary Cooling Products business continued to outperform the market and maintained its growth momentum with a growth of 67 percent in Overall volume. The overall Segment Revenue grew by 51 percent to Rs.3,802 crores as compared to Rs.2,514 crores in the corresponding quarter last year.
Voltas continues to be a market leader both in Split and Window Air-conditioners with an Exit Market Share of 21.2 percent as of June 2024.
The Electro-Mechanical Projects and Services Segment Revenue for the quarter grew by 40 percent at Rs.949 crores compared to Rs. 679 crores in the corresponding quarter last year.
The Segment Result was Rs.68 crores as compared to a loss of Rs.52 crores in the corresponding quarter last year due to provisions made on account of delayed collection in overseas projects
The Engineering Products and Services Segment continued to show a steady performance on the back of a strong order backlog and disciplined execution efforts.
The revenue for the quarter was higher at Rs.161 crores than Rs.142 crores in the corresponding quarter last year. Segment Result was Rs.45 crores as compared to RS.54 crores in the corresponding quarter last year.
Important Financial Ratios:
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 4.32 percent and a return on capital employed (RoCE) of 10.83 percent for the period spanning FY23-24. Additionally, during the same period, the net profit margin stood at 3.09 percent.
Company Profile:
Voltas was created 6 decades ago when Tata Sons joined hands with a Swiss company Volkart Brothers. The company is engaged in the business of air conditioning, refrigeration, and electro-mechanical projects as an EPC contractor both in domestic and international geographies.
Written By Vaibhav Patil
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