Voltamp Transformers Q4 Results Review - Decent; Long-Term Outlook Remains Strong: Prabhudas Lilladher

Prabhudas Lilladher Report

We revise our FY25/26E earnings per share estimates by +3.5%/5.8% factoring in strong demand outlook and healthy expected volume growth. Voltamp Transformers Ltd. reported mixed quarterly performance with revenue growth of 14.6% YoY and Ebitda margin contraction of 112 basis points YoY to 20.0%. Demand momentum is likely to sustain on the back of strong public and private capex.

Although near-term order booking may be slow due to ongoing elections and rising commodity prices, the enquiry pipeline remains healthy across sectors such as data centers, steel, metals and mining, commercial real estate, green energy, oil and gas, etc.

However, with rising competitive intensity, margins are expected to normalize at lower than current levels going forward. Voltamp Transformers' large installed base of over ~80,000 transformers will aid growth in the its high-margin service business.

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