Voltas Limited’s shares tumbled 10% after the company reported Q3 FY24 earnings that fell short of analyst estimates, despite a sharp improvement in profitability. As of 9:31 AM, the stock was trading 10% lower at ₹1,326.70.
The company reported a net profit of ₹130.76 crore, marking a strong recovery from a net loss of ₹27.6 crore in the same quarter last year, reflecting a 573.77% YoY surge.
Revenue from operations increased 17.91% YoY to ₹3,164.16 crore, compared to ₹2,683.61 crore in Q3 FY23. On a quarterly basis (QoQ), revenue rose 16.13% from ₹2,724.58 crore in the previous quarter.
One of the standout metrics was the company’s EBITDA, which soared 594.55% YoY to ₹197.39 crore, up from ₹28.42 crore a year ago. The EBITDA margin also showed a substantial improvement to 6.36% from 1.08% YoY, reflecting a 487.32% expansion.
Operating profit margin surged 874.36% YoY to 5.78%, compared to just 0.59% in the same quarter last year. Meanwhile, earnings per share (EPS) stood at ₹3.99, recovering from a loss of ₹0.92 per share in Q3 FY23.
Despite these positive trends, the market reaction remained negative, as the results failed to meet broader investor expectations. Concerns over competitive pressures and margin sustainability could have contributed to the selloff.
Voltas’ stock has been volatile, with a 52-week high of ₹1,944.9 and a low of ₹990.1. The company’s current market price stands at ₹1,478.
Key Financial Metrics (Q3 FY24)
- Revenue: ₹3,164.16 crore (+17.91% YoY)
- Net Profit: ₹130.76 crore (vs. ₹-27.6 crore YoY, up 573.77%)
- EBITDA: ₹197.39 crore (+594.55% YoY)
- EBITDA Margin: 6.36% vs. 1.08% YoY
- Operating Profit Margin: 5.78% vs. 0.59% YoY
- EPS: ₹3.99 (vs. -₹0.92 YoY)
Brokerage Views on Voltas
- Goldman Sachs (GS): Maintain Sell, Target Price: ₹1,400/sh
- Morgan Stanley (MS): Maintain Overweight, Target Price: ₹1,975/sh
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