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Shares of Voltas staged a sharp intraday recovery and were up a percent as investors continued to read into its results for September quarter.
The stock touched an intraday high of Rs 524.50 and an intraday low of Rs 505.00.
Citi has maintained its buy call on Voltas with a target at Rs 724 apiece.
The global research firm said that the UCP (unitary cooling products) segment performance during the quarter was weak on the back of industry-wide headwinds.
Having said that, it believes that the structural thesis remains intact, including market share gain.
Meanwhile, EMP (elecromechanical projectes) segment rebounded from its lows and continues to shine.
The company reported a net profit of Rs 107 crore for the September quarter, a jump of 12 percent year on year to the profit of Rs 95.36 crore that was reported a year ago.
The manufacturer of air conditioners posted revenue of Rs 1,421.36 crore for the quarter under review. This is a growth of 37 percent from the revenue reported during the September quarter of FY18.
At an operating level, the earnings before interest, taxes, depreciation and amortization (EBITDA) was reported at Rs 108.54 crore against Rs 87 crore that the company reported last year. This is a rise of 25 percent.
The operating margin was reported at 7.6 percent, down from 8.4 percent year on year.
At 09:26 hrs Voltas was quoting at Rs 521.00, up Rs 6.60, or 1.28 percent, on the BSE
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