Voltas slips as Q1 PAT declines 10% YoY

Voltas fell 3.26% to Rs 967 after the company's consolidated net profit declined 10.6% to Rs 108.88 crore despite of 55.2% rise in net sales to Rs 2741.22 crore in Q1 FY23 over Q1 FY22.

On a consolidated basis, profit before tax (PBT) slipped 4.6% year on year to Rs 160.32 crore in the quarter ended 30 June 2022.

Total expenses rose 56.69% year on year to Rs 2,603.48 crore in Q1 FY23. Cost of raw materials consumed rose 31.3% to Rs 1,155.03 crore while employee benefits expenses were up by 2% to Rs 150.48 crore in Q1 FY23 over Q1 FY22.

The unitary cooling products segment reported higher revenue of Rs 2,182.20 crore as compared to Rs 963.11 crore in the corresponding quarter last year. Voltas continues to be the market leader and is at No.1 position in ACs with exit market share of 24.1% as of June 2022.

The electro-mechanical projects and services segment has reported lower Revenue of Rs 455 crore as compared to Rs 688 crore in the corresponding quarter last year owing to the lower carry forward order position. Segment loss was Rs 12 crores as compared to profit of Rs 31 crores last year due to cost overruns and provisions in some projects. Carry forward order book of the segment was at Rs 5,811 crore as compared to Rs 6,149 crore in the corresponding quarter last year.

Engineering products and services segment continued to show improved performance. segment revenue and result for the quarter were higher at Rs 124 crore and Rs 51 crore as compared to Rs 115 crore and Rs 38 crore, respectively in the corresponding quarter last year.

Meanwhile, the company completed the transfer of domestic B2B businesses comprising projects to its wholly owned subsidiary Universal MEP Projects & Engineering Services for a consideration of Rs 1,190 crore.

Voltas is the global air conditioning and engineering services provider of the Tata Group.

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