Q4FY21 Result Update - Voltas Ltd - ICICI Direct

Despite various headwinds in FY21 such as peak season sales loss, supply chain disruptions and inflationary pressures, Voltas has maintained its market leadership position with market share of 25.6%. For FY21, Voltas' sales recovery was at 85%, much ahead of industry sales recovery of 71%. The better than industry growth of RAC sales is attributable to Voltas' inherent strength of its robust supply chain networks, strong brand and its ability to pass on inflationary pressure thereby keeping profitability intact. Also the management's guidance of market share gain of 1% every year is very encouraging. The company's FY21 EBIT margin of UCP division was higher by 150 bps YoY to 14.1%, much ahead of management guidance of 11%-12%. Further, the current lockdown situation across the country in the wake of second wave will lead to loss of peak season sales even this year. We tweak our revenue, PAT estimate downward by ~7.5%, ~18% YoY, respectively, for FY22E, factoring in the same. However, the management has guided for full effort to recoup sales losses in subsequent periods post opening up of the economy. We build in 11%, 12.5% of segment EBIT margin for FY22E, FY23E, respectively vs. 14.1% EBIT margin in FY21 factoring in higher input prices and restoration of some operating costs.

For details, click on the link below: Link to the report

Shares of VOLTAS LTD. was last trading in BSE at Rs.983.15 as compared to the previous close of Rs. 999.75. The total number of shares traded during the day was 113752 in over 4633 trades.

The stock hit an intraday high of Rs. 1000 and intraday low of 953.95. The net turnover during the day was Rs. 110841098.

Source : Equity Bulls

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