Voltas - Q3 FY21 Earnings call update - YES Securities

Demand outlook remains optimistic; commodity price inflation remains challenging

Our View: We remain positive on Voltas as it has demonstrated consistent market share gains along with industry leading margins in RAC. In other product categories like air-cooler, it has been able to make its mark and has managed to reach No 2 position in a short span of time. Voltas-Beko has started gaining traction with its domestic manufacturing facility now fully operational for DC refrigerators. It is on track to achieve 10% market share in Refrigerators and Washing machines by 2025. On the project side, outlook have been improving both in domestic and international geographies.

- Pent up demand and higher pre-buying by channel partners helped strong growth in off-season quarter; while change in product mix aided margin improvement.

- Company have taken price increase to the tune of 5-6% to offset higher commodity prices.

- Execution in project business has seen increased on improved business sentiment largely led by international operations. Conservative time passed provision has dented margin of project business.

- Voltas-Beko currently has1000 billing points and 190 EBO's and experience centres. Company has slowed down channel expansion as production has been falling short of demand.

- Company's first priority is to increase production of Voltas-Beko products and is on track to achieve 10% market share by 2025.

Shares of VOLTAS LTD. was last trading in BSE at Rs.1059.55 as compared to the previous close of Rs. 1079.1. The total number of shares traded during the day was 185508 in over 2053 trades.

The stock hit an intraday high of Rs. 1104 and intraday low of 1052.6. The net turnover during the day was Rs. 199861446.

Source : Equity Bulls

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