Voltas Q2 PAT seen down 23%, margin to remain weak: Poll

Mumbai-based engineering, air conditioning and refrigeration company Voltas will announce its second quarter (July-September) results today. According to a CNBC-TV18 poll, analysts expect revenue growth in Q2 to remain muted due to decline expected in electro-mechanical projects (EMP) revenues on account of lower order backlog.

They expect 10 percent decline in revenues of EPM business while UCP business may grow 15 percent Y-o-Y.

Analysts feel margin will remain weak due to execution of low margin orders and delays in client certifications.

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According to a CNBC-TV18 poll, business outlook for the company remains lackluster although most analysts believe margins may bottom out in FY14.

They believe order backlog should report an improvement as the company has won some sizeable orders in Q2FY14 while domestic execution will be impacted by tight liquidity and high interest rates.

Voltas' consolidated profit after tax may fall 22.9 percent year-on-year to Rs 33 crore in the quarter gone by. In a year ago quarter, PAT has an exceptional adjusted gain of Rs 14.5 crore.

Consolidated total income is seen going down 2.5 percent Y-o-Y to Rs 1,134 crore while earnings before interest, tax, depreciation and amortisation is likely to increase 0.7 percent on yearly basis to Rs 44 crore in three-month period ended September 2013.

Operating profit margin may rise 10 basis points year-on-year to 3.9 percent in second quarter of current financial year.