Voltas Q1 Results Review - Strong Show As The EMPS Segment Turns Around: Motilal Oswal

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.Voltas Ltd.’s Q1 FY25 performance was above our estimates, led by higher-than-estimated revenue growth in the unitary cooling product and electro mechanical projects segments, and a profit in EMPS versus our estimate of a loss. Revenue stood at Rs 49.2 billion versus estimate Rs 39.4 billion. Ebitda was Rs 4.2 billion versus estimate Rs 2.6 billion. Operating profit margin surged 3.1% YoY to 8.6% (estimate: 6.6%). Adjusted profit after tax jumped 159% YoY to Rs 3.3 billion (estimate: Rs 1.9 billion). The management indicated that UCP’s overall volume grew 67% YoY in Q1, and it maintained its leadership position in the room AC segment with an exit market share of 21.2% as of June-24. In EMPS, domestic projects continued to grow, and the outlook remains positive. Whereas, in the international project, the UAE and Saudi Arabia have delivered good performance leading to revenue growth, which, along with strong execution and controlled costs, has led to profits following losses in the last six quarters.We raise our EPS estimates by 19%/4% for FY25/FY26 led by strong revenue growth and Q1 performance. We also introduce FY27 estimates. We would keenly monitor the continuity of profitability in the EMPS segment. We reiterate our Buy rating on the stock with a revised target price of Rs 1,800 (versus Rs 1,670) based on 50 times Sep’26E EPS for the UCP segment, 35 times Sep’26E EPS for the PES and EMPS segments, and Rs 38/share for Voltbek. .Click on the attachment to read the full report:.Voltas Shares Hit Record High After Profit More Than Doubles In Q1.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Voltas Q1 Results Review - Strong Show As The EMPS Segment Turns Around: Motilal Oswal

The brokerage expects the company’s Ebitda/adjusted profit to report a compound annual growth rate of 51%/79% over FY24-27, partly due to a low base.

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