Voltas Limited net profit for the year slumped by 57% due to the decline in sales by 16% from Rs 9,843 m in FY99 to Rs 8,243 m in FY00. The decline in sales is due to the divestment of its chemicals and part of the white goods business. The companies operating margins improved marginally from 2.8% to 3.3%.
Operating Profit (EBDIT)
Operating Profit Margin (%)
Profit before Tax
Profit after Tax/(Loss)
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Earnings per share
The other adjustments includes the voluntary retirement scheme (Rs 110 m spread over three years), net loss on sale of long-term investments and diminution in the value of investments. The company has repaid its debenture amounting to Rs 470 m thus bringing down the interest burden.
Voltas Limited has 27% market share in airconditioners market and a 20% in refrigerators segment. It is also manufacturers washing machines, chemicals and granites. The company has been severely affected by the non-core business activities and labour union problem for quite some time. But, the company has been restructuring for the past two years thus bringing down the expenses by 17% from Rs 9,572 m to Rs 7,975 m.
The stock is currently trading at Rs 34 at a P/E multiple of 20.1x on the FY00 earnings.
Voltas has announced the third quarter (3QFY16) results for FY16. The company has reported a 38.6% YoY growth in sales while net profits fell by 49.5% YoY during the quarter. Here is our analysis of the results.
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