Voltas Ltd.|Q2FY15 Result Update :: IndiaNivesh

Please Share::

�� India Equity Research Reports, IPO and Stock News Visit http://indiaer.blogspot.com/ for complete details ��

��

-->
For Q2FY15, Voltas reported top-line lower than consensus estimate however
profitably was much better than estimates.Net revenue for the quarter declined
by 8.9% to Rs 9.847 mn, led by decline in both EMPS and EPS segments. Margin
expansion across all the segments helped in robust overall margin expansion by
389 bps to 7.9%, well above consensus estimate of 4.7%. Mainly on account of
this margin expansion EBITDA for the quarter increased by 79.8% to Rs 777 bn.
Change in policy caused depreciation to rise by 16% to Rs 69 mn. Company also
reported higher effective tax rate of 41.2% for Q2FY15. Consequently Adj net profit
for the quarter increased from Rs 423 mn in Q2FY14 to Rs 499 mn in Q2FY15.
Consolidated Financials:
Rs mn Q2FY15E Q1FY15 Q2FY14 q/q y/y Bloomberg
Estimates Variance
Net Revenue 9,847 17,573 10,805 ‐44.0% ‐8.9% 11,261 ‐12.6%
EBITDA 777 1,319 432 ‐41.1% 79.8% 530 46.7%
Adj Net Profit 499 1,085 423 ‐54.0% 18.1% 485 2.9%
EBITDA 7.9% 7.5% 4.0% 39 389 4.7% 319
PAT 5.1% 6.2% 3.9% 116 ‐110 4.3% 76
Source: Company filings, IndiaNivesh Research, Bloomberg Estimates
Segment wise performance:
Electro-mechanical segment : (EMPS)
 Top-line for the segment dropped by 21.7% to Rs ~5.2 bn, largely on account
of drop in turnover of International projects. operating margin of the segment
continue to remain low at 0.9%
 EMPS order book has declined y/y by 15% to Rs 36.8 in Q2FY15.
Engineering products and services segment: (EPS)
 EPS segment reported a decline of 31.1% to Rs 871.7 mn. Margin for the
segment increased substantially from 21.8% in Q2FY14 to 36.6% in Q2FY15.
 As per management commentary, turnover of mining and construction
equipment business was lower whereas textile machinery business grew both
in terms of revenue and bottom-line.
Segment Revenue Break-up
Rs mn Q2FY15E Q1FY15 Q2FY14 Q/Q Y/Y H1FY15 H1FY14 Y/Y
EMPS 5,253.4 6,222.4 6,708.8 ‐15.6% ‐21.7% 11,475.6 13,638.3 ‐15.9%
EPS 871.7 1,108.9 1,264.6 ‐21.4% ‐31.1% 1,980.6 2,376.3 ‐16.7%
UCP 3,448.7 10,013.8 2,643.1 ‐65.6% 30.5% 13,462.5 10,510.5 28.1%
Others 116.8 181.1 150.5 ‐35.5% ‐22.4% 297.9 262.1 13.7%
Less: Intersegment revenue 1.2 3.1 1.7 ‐61.3% ‐29.4% 4.3 4.1 4.9%
Net Sales 9,689.4 17,523.1 10,765.3 -44.7% -10.0% 27,212.3 26,783.1 1.6%
Source: Company filings, IndiaNivesh Research Note:EMPS:Electro‐mechanical Projects and Services EPS‐Engineering Products and Services
UCP‐Unitary Cooling Products
Unitary cooling products: (UCP)
 UCP was the only segment to show positive y/y revenue growth in Q2FY15.
Sales of this segment jumped by 30.5% to Rs ~3.4 bn. margin also expanded
by 107 bps to 12.4%, on back of higher sales volume and improved unit
margins.

LINK
http://www.indianivesh.in/Admin/Upload/635515528554192500_Voltas_Q2FY15%20Result%20Update.pdf