Earnings Outlook
Air conditioner sales to support Voltas earnings
This story was originally published at 19:26 IST on 10 August 2024
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MUMBAI – A gain in market share in air conditioner sales and a healthy order book in electro-mechanical products and services are expected to boost Voltas Ltd's topline in the June quarter. The company will likely report a robust growth in room air conditioner sales owing to strong heat waves across the country, according to analysts.
The home appliances company is expected to report a consolidated revenue of 44.79 bln rupees, up 33.3% on year and 6.6% sequentially, according to an average of estimates from nine brokerages. The highest estimate was 48.08 bln rupees by YES Securities (India), and the lowest was 39.43 bln rupees by Motilal Oswal Financial Services.
Consolidated net profit is seen rising 90% on year to 2.46 bln rupees, according to an average of estimates by nine brokerages. Sequentially, the bottomline is expected to rise 111.1%. The highest estimate for net profit was 3.13 bln rupees and the lowest was 1.90 bln rupees. The company's consolidated earnings before interest, tax, depreciation, and amortisation are seen at 3.33 bln rupees, according to estimates by eight brokerages.
According to Nirmal Bang Institutional Equities, Voltas maintains leadership in the industry in terms of volume sold. Further, brokerage firm Nomura said that it expects the company to grow ahead of the industry, and that the company gained market share in the June quarter.
Voltas has highlighted an over 100% volume growth in room air conditioners in May, Kotak Institutional Equities said in its pre-earnings report. The company has also increased its prices by 3-5% in the quarter, as per Prabhudas Lilladher.
On the downside, a sharp rise in the prices of copper and aluminium coupled with higher advertising spending may keep margins in Apr-Jun subdued, Nomura said in its pre-earnings report. However, Nuvama said that a hike in prices in the room air conditioner category will help Voltas to expand its margins slightly.
The consumer durables company is slated to announce its Apr-Jun results on Monday. On Friday, shares of Voltas ended 0.5% lower at 1,428.85 rupees on the National Stock Exchange.
Following are the Apr-Jun earnings estimates, in mln rupees, of Voltas based on reports from 12 brokerages:
| Brokerage firm | Net sales (in mln rupees) | Net profit (in mln rupees) | EBITDA (in mln rupees) |
| Anand Rathi Share and Stock Brokers Ltd | 45,789.00 | 1,956.00 | ------- |
| HDFC Securities Ltd | 45,100.00 | 2,400.00 | 3,400.00 |
| Kotak Institutional Equities | 47,921.00 | 3,134.00 | 4,071.00 |
| Motilal Oswal Financial Services Ltd | 39,430.00 | 1,900.00 | 2,590.00 |
| Nirmal Bang Equities Pvt Ltd | 46,000.00 | 2,463.00 | 3,300.00 |
| Nomura Equity Research | 44,566.00 | 2,657.00 | 3,424.00 |
| Nuvama Wealth Management Ltd | 46,227.00 | 2,885.00 | 3,596.00 |
| Prabhudas Lilladher Pvt Ltd | 39,956.00 | 1,909.00 | 2,557.00 |
| YES Securities (India) Ltd | 48,079.00 | 2,815.00 | 3,720.00 |
| Average | 44,785.33 | 2,457.67 | 3,332.25 |
End
Reported by Noel John
Edited by Akul Nishant Akhoury
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