Dated:- 9th August 2019 <\/p>\n\n\n\n
1QFY20 Results<\/strong><\/p>\n\n\n\n \u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Voltas reported a 24% YoY growth in consolidated revenues to Rs 26,540 mn. The revenue growth was driven by 47% YoY growth in the Unitary Cooling Products (UCP) (main revenue earning air conditioners) segment at Rs 17,488 mn. The Electro-Mechanical Projects (EMP) segment revenues declined by 5% YoY to Rs 8,241 mn and the Engineering Product Services (EPS) segment revenues declined by 4% YoY to Rs 740 mn.<\/p>\n\n\n\n \u00b7 The EBITDA margin declined by 35 bps YoY in 1QFY20 to 11% from 11.35% in 1QFY19.<\/p>\n\n\n\n \u00b7 Voltas reported EBIT margin expansion of ~60 bps YoY in UCP to 13.1%. The EBIT margins declined by ~220 bps YoY and ~230 bps YoY in EMP (8%) and EPS (32.4%) respectively.<\/p>\n\n\n\n \u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Voltas reported a one-time expenditure of ~Rs 430 mn towards a Voluntary Retirement Benefits Scheme. The adjusted Consolidated PAT for 1QFY20 stood at Rs 1,941 mn v\/s Rs 1,839 mn in 1QFY19. The profit share in the joint ventures including was Rs 213 mn in this quarter v\/s Rs 193 mn in 4QFY19.<\/p>\n\n\n\n Management Commentary<\/strong><\/p>\n\n\n\n \u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Voltas continues to be the market leader in Room Air conditioner business with a market share of 24.1% for 1QFY20 (25.3% for June 2019) at Multi-Brand Outlets. The Air Conditioning industry grew by 36% YoY; Voltas grew higher than the industry YoY growth of ~47%. The inverter ACs accounted for more than 50% of the total revenues.<\/p>\n\n\n\n \u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Commercial Refrigeration products and Air Coolers witnessed increased demand in the quarter. The air purifiers too received an encouraging response.<\/p>\n\n\n\n \u00b7 Management guided for UCP segment EBIT margins to remain in the range of 11-12% for FY20E.<\/p>\n\n\n\n \u00b7 In the EMP segment, the order book stood at Rs 47,560 mn, higher by ~3% YoY. The domestic order intake during 1QFY20 was Rs 4,490 mn v\/s Rs 1,500 mn in 1QFY19. On the International front, Voltas continues to be cautious.<\/p>\n\n\n\n Consensus Estimate (Source: market screener website)<\/strong><\/p>\n\n\n\n \u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0The closing price of VOLT was Rs 606\/- as of 09-Aug-2019. It traded at 33x \/ 28 x \/ 24x the consensus EPS for 20E \/21E \/22E EPS of Rs 18.2 \/ 21.8 \/ 25.1 respectively.<\/p>\n\n\n\n \u00b7 Consensus target price of Rs 630\/- implies a PE of 25 x on FY22E EPS of Rs 25.1\/- <\/p>\n","protected":false},"excerpt":{"rendered":" Dated:- 9th August 2019 1QFY20 Results \u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Voltas reported a 24% YoY growth in consolidated revenues to Rs 26,540 mn. The revenue growth was driven by 47% YoY growth in the Unitary Cooling Products (UCP) (main revenue earning air conditioners) segment at Rs 17,488 mn. The Electro-Mechanical Projects (EMP) segment revenues declined by 5% YoY to […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[30,84],"tags":[],"_links":{"self":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/132"}],"collection":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/comments?post=132"}],"version-history":[{"count":5,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/132\/revisions"}],"predecessor-version":[{"id":137,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/132\/revisions\/137"}],"wp:attachment":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/media?parent=132"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/categories?post=132"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/tags?post=132"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}