Voltas shares slip 5% post Q4 earnings; details here
Voltas shares fell 5.52 per cent to Rs 804.70 against the previous close of Rs 855.05 on BSE. Voltas stock opened with a loss of 2.86% at Rs 830.60 today.
- Apr 27, 2023,
- Updated Apr 27, 2023 3:48 PM IST
Shares of Voltas Ltd fell over 5% today after the Tata Group firm reported a decline of 21.6 per cent in net profit for the fourth quarter ended March 2023. Voltas stock fell 5.52 per cent to Rs 804.70 against the previous close of Rs 855.05 on BSE. Voltas stock opened with a loss of 2.86% at Rs 830.60 today.
Voltas shares are trading lower than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages. The large cap stock has lost 36.45 per cent in a year and gained 0.4 per cent in 2023.
Total 2.16 lakh shares of the firm changed hands amounting to a turnover of Rs 17.78 crore on BSE. The market cap of the firm fell to Rs 26,699 crore on BSE. The stock hit a 52-week high of Rs 1,302 on April 29, 2022 and a 52-week low of Rs 737.60 on January 27, 2023.
The air conditioning maker reported a consolidated net profit of Rs 143.23 crore in the March 2023 quarter against Rs 182.71 crore profit in the corresponding quarter of the previous fiscal. Revenue from operations rose 11.5 per cent to Rs 2,936.76 crore during FY 2022-23 under review as against Rs 2,633.72 crore a year ago.
"Profit before and after taxes was impacted during the current quarter due to provisions made on delayed collection in the international project business," Voltas said.
Total income climbed 11.08 per cent to Rs 3,003.46 crore in Q4FY2022-23, while the total expenses were at Rs 2,761.45 crore, up 13.75 per cent in Q4FY23.
For the fiscal ended March 2023, consolidated net profit fell 73.07 per cent to Rs 136.22 crore compared to a net profit of Rs 506 crore in FY22.
Revenue from operations rose 19.87 per cent at Rs 9,399.37 crore in FY 2022-23 against Rs 7,841.07 crore in FY22. The board recommended a dividend of Rs 4.25 per share on face value of Re 1 per share for the year 2022-23.
ICICI Securities has maintained a hold call on the Voltas stock.
"We model Voltas to report revenue and PAT CAGRs of 15.6% and 43.6% respectively over FY23-FY25E. However, we believe the return ratios are likely to be below cost of capital. While we remain positive on Voltas due to strong brand and established distribution network, we believe stock price upside is capped at current valuations (36.5x of FY25E EPS). Maintain HOLD on the stock with a revised DCF-based target price of Rs825 (implied P/E of 35x on FY25E EPS)."
Praveen Sahay - Research Analyst, Prabhudas Lilladher gave a buy call to the Voltas stock.
"Voltas reported above revenue growth, while margins were lower than expectations due to losses in EMPS segment due to delay in collection and margin contraction in UCP segment. UCP segment's performance was decent on the revenue front despite VOLT ceding market share in RAC segment. EPS revenue grew better than our expectations while, EMPS segment saw softness in revenue, where order flow was strong mainly from domestic projects," said Sahay.
Also read: Bajaj Finserv Q4 profit jumps 31% to Rs 1,769 crore; dividend announced
Also read: HUL Q4 results: Profit rises 13% to Rs 2,601 crore; FMCG major announces Rs 22 dividend
Shares of Voltas Ltd fell over 5% today after the Tata Group firm reported a decline of 21.6 per cent in net profit for the fourth quarter ended March 2023. Voltas stock fell 5.52 per cent to Rs 804.70 against the previous close of Rs 855.05 on BSE. Voltas stock opened with a loss of 2.86% at Rs 830.60 today.
Voltas shares are trading lower than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages. The large cap stock has lost 36.45 per cent in a year and gained 0.4 per cent in 2023.
Total 2.16 lakh shares of the firm changed hands amounting to a turnover of Rs 17.78 crore on BSE. The market cap of the firm fell to Rs 26,699 crore on BSE. The stock hit a 52-week high of Rs 1,302 on April 29, 2022 and a 52-week low of Rs 737.60 on January 27, 2023.
The air conditioning maker reported a consolidated net profit of Rs 143.23 crore in the March 2023 quarter against Rs 182.71 crore profit in the corresponding quarter of the previous fiscal. Revenue from operations rose 11.5 per cent to Rs 2,936.76 crore during FY 2022-23 under review as against Rs 2,633.72 crore a year ago.
"Profit before and after taxes was impacted during the current quarter due to provisions made on delayed collection in the international project business," Voltas said.
Total income climbed 11.08 per cent to Rs 3,003.46 crore in Q4FY2022-23, while the total expenses were at Rs 2,761.45 crore, up 13.75 per cent in Q4FY23.
For the fiscal ended March 2023, consolidated net profit fell 73.07 per cent to Rs 136.22 crore compared to a net profit of Rs 506 crore in FY22.
Revenue from operations rose 19.87 per cent at Rs 9,399.37 crore in FY 2022-23 against Rs 7,841.07 crore in FY22. The board recommended a dividend of Rs 4.25 per share on face value of Re 1 per share for the year 2022-23.
ICICI Securities has maintained a hold call on the Voltas stock.
"We model Voltas to report revenue and PAT CAGRs of 15.6% and 43.6% respectively over FY23-FY25E. However, we believe the return ratios are likely to be below cost of capital. While we remain positive on Voltas due to strong brand and established distribution network, we believe stock price upside is capped at current valuations (36.5x of FY25E EPS). Maintain HOLD on the stock with a revised DCF-based target price of Rs825 (implied P/E of 35x on FY25E EPS)."
Praveen Sahay - Research Analyst, Prabhudas Lilladher gave a buy call to the Voltas stock.
"Voltas reported above revenue growth, while margins were lower than expectations due to losses in EMPS segment due to delay in collection and margin contraction in UCP segment. UCP segment's performance was decent on the revenue front despite VOLT ceding market share in RAC segment. EPS revenue grew better than our expectations while, EMPS segment saw softness in revenue, where order flow was strong mainly from domestic projects," said Sahay.
Also read: Bajaj Finserv Q4 profit jumps 31% to Rs 1,769 crore; dividend announced
Also read: HUL Q4 results: Profit rises 13% to Rs 2,601 crore; FMCG major announces Rs 22 dividend