Share price of this large-cap stock engaged in the manufacturing of oil-filled power and distribution transformers moved down by 13.07 percent on BSE to hit an intraday low at Rs. 9,531.65 in the trading session of Friday after reporting Q4 results and declaring its highest-ever dividend payout.
With a market capitalisation of Rs. 10,120 crore, at 12:44 p.m. the shares of Voltamp Transformers Limited were trading in the red at Rs. 10,002, down by 8.78 percent.
The fluctuations in the share prices were observed after Voltamp Transformers Limited announced its financial results for Q4 FY23-24 and FY24, through the recent filings with the stock exchanges.
The revenue from operations of the company stood at Rs. 527.4 crore in Q4 FY23-24, increasing by 21.7 percent QoQ from Rs. 433.3 crore in Q3 FY23-24, while on a year-on-year basis, it increased by 19.6 percent, from Rs. 1,425.2 crore in FY22-23 to Rs. 1,705.2 crore in FY23-24.
Voltamp Transformers witnessed an increase in the net profit by 53.7 percent from Rs. 200 crore in FY22-23 to Rs. 307.4 crore in FY23-24. However, the PAT declined by nearly 1.15 percent QoQ from Rs. 94.61 crore in Q3 FY23-24 to Rs. 93.52 crore in Q4 FY23-24.
On a year-on-year basis, the EBITDA Margin dropped from 21.1 percent in Q4 FY22-23 to 19.83 percent in Q4 FY23-24, a 6 percent decline. The EBITDA margin decreased sequentially by more than 500 basis points and by 100 basis points from the same quarter last year.
With commodities price rise and the ongoing election season, the order closing tempo at present is a bit slow.
Although factors on the demand front are holding up well, there are multiple cost challenges. The geopolitical situation may have an effect on the supply-chain issues and costs related to logistics and freight.
The management had previously stated that certain one-offs occurred in the December quarter and that the margins would return to normalised levels.
Further, the Board of the company proposed payment of dividend of Rs. 90 per equity share on a face value of Rs. 10 per share, the highest-ever in its history entailing a total payout of Rs. 91.05 crores, representing 38.55 percent payout of after-tax profit, adjusted for marked-to-market gain.
The company has identified a suitable land parcel to put up a new power transformer factory near Jarod village on Vadodra-Halol road in Gujarat, and will have the necessary permission/approval in place by the end of June 2024.
Established in 1963, Voltamp Transformers Limited is engaged in the manufacturing and supplying of electrical transformers.
The company’s product portfolio consists of oil-filled transformers, cast resin transformers, unitised substations, induction furnace transformers, lighting transformers, and also providing sales after-service relating to transformers.
Written by Shivani Singh
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