February 14, 2017

Voltas announces consolidated financial results for Q3 FY17

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 and nine months ended December 31, 2016. The company adopted Indian Accounting Standards (Ind-AS) from April 1, 2016, and accordingly the financial results for current period and corresponding period last year have been prepared as per Ind-AS. The figures for previous period have been regrouped / restated wherever necessary in line with Ind-AS requirements.

Consolidated results for the nine months period ended December 31, 2016:
The consolidated gross sales/income from operations for the nine months period ended December 31, 2016, was higher by 4 percent, at Rs4,011 crore as compared to Rs3,870 crore in the corresponding period last year largely contributed by unitary cooling products. Profit before tax was higher by 42 percent, at Rs470 crore as compared to Rs331 crore last year. Net profit for the period was also higher at Rs311 crore as compared to Rs229 crore last year. Earnings per share (not annualised) as at December 31, 2016, improved to Rs9.37 as compared to Rs6.88 last year (face value per share - Re1). Other comprehensive income recognised as per Ind-AS mainly includes notional mark-to-market gains on movement in market share price of certain strategic long term equity investments and other gains and losses. Accordingly, total comprehensive income for the nine months period ended December 31, 2016, was Rs347 crore as compared to Rs237 crore last year.

Consolidated results for the quarter ended December 31, 2016:
The short term impact of demonetisation has weakened consumer and business sentiments. The consolidated gross sales/income from operations for the quarter ended December 31, 2016, which was lower by 6 percent at Rs1,194 crore as compared to Rs1,266 crore in the corresponding quarter last year. However, profit before tax was significantly higher by 62 percent at Rs125 crore as compared to Rs77 crore last year due to improved margins, tighter control on overheads and higher income from investments. Net profit for the period was also higher by 44 percent, at Rs82 crore as compared to Rs57 crore last year.

Consolidated segment results for the quarter ended December 31, 2016:
Electro-mechanical projects and services: Progress on certain new orders and general pace of execution remained slow. Accordingly, segment revenue for the quarter was lower at Rs703 crore as compared to Rs724 crore in the corresponding quarter last year. However, segment result improved to Rs27 crore as compared to loss of Rs4 crore last year, also due to positive closure of certain old projects. Order book of the segment stood higher at Rs4,196 crore as compared to Rs3,640 crore in the same quarter last year. 

Engineering products and services:
Segment revenue and result for the quarter were Rs81 crore and Rs20 crore as compared to Rs111 crore and Rs25 crore, respectively in the corresponding quarter last year. Segment performance in Q3 last year included a one-off transaction for sale of refurbished used loader in the mining and construction equipment business. Additionally, performance of textile machinery business remained subdued due to various environmental and operational challenges, including demonetisation.

Unitary cooling products for comfort and commercial use:
The segment had grown strongly from April 2016 to October 2016 but was negatively impacted after demonetisation. There was a decline in sales by 5 percent and was Rs411 crore as compared to Rs431 crore in last year. As a result, segment results were lower at Rs43 crore as against Rs50 crore in the corresponding quarter last year.  Despite severe competition, the company maintained its leadership position in room air conditioners across all regions of India with YTD market share of 21.7 percent at multi-brand outlets.