Voltas Q4: Analysts expect 40% fall in PAT at Rs 62cr

Mumbai-based air conditioning manufacturer Voltas will declare its fourth quarter (January-March) numbers today. Analysts on an average expect the company's consolidated profit after tax to fall by 40.4 percent year-on-year to Rs 62 crore due to weak operational performance during the quarter, according to CNBC-TV18 poll.

However, total income is seen going up by 0.4 percent to Rs 1,580 crore from Rs 1,574 crore Y-o-Y. Earnings before interest, tax, depreciation and amortisation (EBITDA) are expected to go down 34.1 percent Y-o-Y to Rs 90 crore in March quarter. Also Read - ICICI Sec initiates coverage on Voltas with reduce rating Operating profit margin is also seen falling 300 bps to 5.7 percent versus 8.7 percent year-on-year. Revenues will remain flat According to analysts, while the company's unitary cooling segment (UCP) will report a growth driven by summer sales of air conditioners, it is expected to witness a decline in sales of the EMP (electro mechanical products segment) because of lower order backlog in this segment. Its EMP segment faces challenges because of continued worsening situation in the Middle East and further delays in the Sidra Medical Project. Margins of engineering, air conditioning and refrigeration company will be under pressure due to execution of low margin orders and delay in client certifications in EMP segment. Voltas is still executing the low margin Sidra Medical Project, which is facing significant cost escalations.  Investors should watch out for Sidra project status update and outlook for order inflows.