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Voltas stock drops 7% on Q4FY18 numbers

Shares of Voltas dropped 7% after poor March quarter numbers. Net profit during the quarter decreased by 2.4% yoy to Rs195.6cr as compared to Rs200.3cr in Q4FY17.

Its consolidated revenue was up by mere 0.7% yoy to Rs2,048.4cr from Rs2,035.1cr in Q4FY17 impacted by poor performance of the Engineering products and services (EPS) and Unitary Cooling Products (UCP) segments.

EBITDA grew by 14.5% yoy to Rs253.2cr from ~Rs221.2cr in Q4FY17. EBITDA increase was a result of decline in other expenses and employee cost by 16.4% and 3.4% yoy during the quarter. Thus, EBITDA margin improved by 149bps from 10.9% in Q4FY17 to 12.4% in Q4FY18.

EPS segment’s revenue was down 21.9% yoy to Rs83.4cr, while EBIT margin increased from 24.2% in Q4FY17 to 29.8% in Q4FY18 owing to favorable mix.

The stock is currently trading at Rs544.50 down by Rs39.05 or 6.69% from its previous closing of Rs583.55 on the BSE. The scrip opened at Rs557 and has touched a high and low of Rs559.35 and Rs531.75 respectively.