Air conditioning and refrigeration company Voltas's second quarter earnings are expected to be muted. Consolidated profit is seen rising 20 percent year-on-year to Rs 60 crore but operating profit may fall 3 percent to Rs 75 crore and margin may contract 30 basis points to 7.6 percent in quarter gone by.
Profit may be supported by other income and lower tax rate.
According to analysts polled by CNBC-TV18, revenue is expected to be at Rs 993 crore during the quarter against Rs 985 crore in year-ago period.
UCP (unitary cooling products) division is expected to show moderation in growth impacted by muted demand scenario due to weak summer and sluggish consumer spend. Even high discounting on room AC sales may lead to erosion of margin.
In electro-mechanical projects division (EMP), slower pace of project execution may continue to be a challenge. Sales may be partially supported by Doha Festival City project. Analysts expect stable margin.
In engineering projects, they expect company to report 10 percent growth in revenue but margin may contract.
Factors to watch out for would be volume growth & market share in the AC segment, ordering environment in Middle East (Qatar, Saudi Arabia and Dubai) and investment climate.
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