Voltas Q2FY18: Quarterly outlook and recommendation | Voltas Q2FY18| Fundamental analysis | Outlook | Indianotes.com


VOLTAS reported  strong  yearly  growth  for  the second  quarter  FY18  supported  by  higher  PAT  and controlled  expenditure.  Revenue  stood  at  Rs.  10367  Mn for  current  quarter  against  Rs.  9815  Mn  moving  6%  up YOY.  EBDITA  for  Q2  FY18  was  reported  at  Rs.  1369  Mn compared  to  Rs.  1345  Mn  same  period  previous  year growing  2%  YOY.  PAT  jumped  to  Rs.  954  Mn  in  the current  September  quarter  against  Rs.  782  Mn corresponding period previous year  growing  22% YOY.

Voltas  has  reported  weak  sequential numbers in a traditionally weak September  quarter, but yearly  growth  is  strong  with  stable  revenue,  controlled expenditure and higher PAT. Voltas currently has market share  of  23%  in  the  room  air  conditioner  market  for September  2017.  Engineering  Products  &  Services  degrew  11%,  whereas  Electro-Mechanical  Projects  & Services  and  Unitary  cooling  products  grew  3%  &  15% respectively  in  the  current  September  quarter.  We recommend  BUY  for  the  stock  for  medium  term  with target of Rs.725 with PE multiple of 35.38 x FY18E & 30.95x FY19E.

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About Suhani Adilabadkar

Suhani Adilabadkar is a Research Analyst registered with SEBI ((INH200003240)) She has done PGDBA (Finance), MS (Finance) and a Fellowship from Insurance Institute of India. She maintains a blog where she publishes research reports across industries – oasisfundamentals.blogspot.in.

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