August 10, 2018
Key highlights of Voltas's consolidated Q1 FY 2018-19 financial results
|Q1 FY 2018-19
|Q1 FY 2017-18
|Gross Sales / Income from Operations||2134||1962||9 percent|
|Profit before tax||263||261||1 percent|
|Profit after tax||187||188||-|
Mumbai: The board of directors of Voltas, the global air conditioning and engineering services provider of the Tata group, today announced the consolidated financial results (including the consolidated segment report) for the quarter ended June 30, 2018.
Consolidated Results for the quarter ended June 30, 2018
The consolidated gross sales / income from operations for the quarter ended June 30, 2018, was higher by 9 percent, at Rs2,134 crore as compared to Rs1,962 crore in the corresponding quarter last year. Profit before tax was higher by 1 percent, at Rs263 crore as compared to Rs261 crore last year, notwithstanding lower other income of Rs28 crore in the current quarter as compared to Rs59 crore in the corresponding quarter last year. Profit after tax was stable at Rs187 crore as compared to Rs188 crore last year. Tax expense for the current quarter ended June 30, 2018, is determined based on tax rate that apply to different categories of income as compared to average annual effective rate in the corresponding quarter last year. Earnings per Share (Face Value per share of Re1) (not annualised) as at June 30, 2018, was at Rs5.56 as compared to Rs5.61 last year. Total comprehensive income, including notional mark to market revaluation gains / losses on equity investments, foreign currency translations, etc. for the quarter stands at Rs242 crore as compared to Rs234 crore in the corresponding quarter last year.
The group has aligned its policy of revenue recognition with Ind AS 115 ‘Revenue from Contracts with Customers’ which is effective from April 1, 2018. The application of Ind AS 115 has impacted the group's accounting of expected credit losses on contract assets and identification of performance obligation on certain transactions. As permitted under the standard, the group has adopted modified retrospective approach and debited the retained earnings at April 1, 2018, by Rs131 crore, net of tax effect. The application of Ind AS 115 did not have any significant impact on the financial results and EPS for the quarter ended June 30, 2018.
Consolidated Segment Results for the quarter ended June 30, 2018
- Unitary cooling products for comfort and commercial use: Despite stiff competition, Voltas brand maintained its No1 position, improving its market share to 23.5 percent during the quarter ended June 30, 2018. The company has also ramped up its product mix to gain market share in the inverter AC segment. Uncertain weather, unseasonal rains and lower customer offtake has led to a reduction in segment revenue which stood at Rs1,191 crore as compared to Rs1,212 crore last year. Segment result was Rs149 crore as compared to Rs171 crore in the corresponding quarter last year.
- Electro-Mechanical projects and services: Segment revenue for the quarter was higher at Rs866 crore as compared to Rs661 crore in the corresponding quarter last year. Segment results was higher at Rs88 crore as compared to Rs35 crore last year, reflecting better quality of orders and efficient execution both in domestic and international business. Carry forward order book of the segment stood at Rs4,623 crore.
- Engineering products and services: Segment revenue and results for the quarter were at Rs77 crore and Rs27 crore as compared to Rs90 crore and Rs26 crore, respectively in the corresponding quarter last year. The impact due to demonetisation and GST implementation has been extra severe on the textile machinery industry. In mining and construction equipment, Mozambique operations continue to drive the performance. On the domestic front, a gradual recovery appears to be on the horizon and the company has re-prioritised the India business.