Broadbrush Voltas Q4 FY 23 highlights –
Q4 outcomes –
Sales- 2957 vs 2667 cr
EBITDA – 190 vs 232 cr ( margins @ 6 vs 9 pc )
PAT at 143 vs 183 cr
Company incured a one time loss of 243 cr due termination of contracts in Dubai and Qatar because of which, the full year profitability was suppressed. Legal proceedings against the main contractor have been initiated to recover these amounts, however provisions have been made as a matter of prudence
Cash and cash equivalents on books as on 31 Mar at aprox 2600 cr
Seeing huge demand for inverter ACs. Have introduced window inverter ACs too
Witnessed healthy demand for water coolers, commercial freezers and water dispensers in Q4
Voltas Becko brand witnessed a volume growth of 36 pc in Q4 !!!
There was an inventory build up with channel partners towards the end of March due unseasonal rains. Same as getting liquidated as summer is progressing
High single digit margins to continue in the medium term wrt Unitary cooling business
Company believes that competition is indulging in unsustainable pricing. This should correct at some point in time reversing the Mkt share losses for Voltas
Capex guidance for next 18 months at 350-450 cr – for expanding commercial AC and refrigeration facilities
Compressor manufacturing – looking to set up own facility for self sufficiency ( backward integration ). Looking out for right kind of partners
Some competitors are trying to gain Mkt share by making losses in AC segment. Despite the loss in Mkt shrare, Voltas is still the leader in AC category
Total AC volumes for FY 23 was > 14 lakh units
Total turnover for VoltBek business > 1000 cr
Don’t see a repeat of extraordinary losses in electro-mechanical projects division going fwd ( like the ones witnessed this year ). May even see a
reversal in these losses in 18-24 months as the legal process unfolds
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