Voltas shares zoom 9% to record high on solid Q1 earnings

Voltas reported a sharp 310 basis point on year improvement in its EBITDA margin.

A strong set of earnings for the April-June quarter, combined with an equally impressive operational performance, helped shares of Voltas climb over 9 percent to a record high of Rs 1,563 apiece on August 12.

At 10.35 am, shares of Voltas were trading slightly off its record high at Rs 1,555 on the NSE. The stellar quarterly earnings also tipped off a spike in volumes in the counter as 54 lakh shares changed hands on the exchanges so far, much higher than the one-month daily traded average of 11 lakh shares.

The Tata group company recorded a net profit of Rs 334.20 crore, reflecting a near three-fold jump from Rs 129.30 crore clocked in the same quarter last fiscal. Revenue also grew 46.50 percent YoY to Rs 4,921 crore, up from Rs 3,359.90 crore in the base period.

The sharp revenue growth was fueled by a strong performance in its core Unitary Cooling Products (UCP) segment, which made up around 77 percent of Voltas' total quarterly sales. The UCP segment posted a 51 percent year-over-year sales growth, with its margins improving by 40 basis points to 8.6 percent.

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A standout of the quarter was the turnaround in Voltas' Electro-Mechanical Projects and Services (EMPS) business, which recorded a 40 percent year-on-year revenue growth and a positive margin of 7.1 percent. The EMPS segment contributed nearly 20 percent to Voltas' total sales for the June quarter.

The strong performances by two major segments also aided Voltas' operational performance in Q1, with EBITDA margin swelling up 310 basis points to 8.6 percent as compared to 5.5 percent in the same quarter a year ago.

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