Voltas’ FY 07-08 operating profit up by 100 per cent
May 15, 2008

• Sales up by 26 per cent
  
• Board recommends 135-per cent dividend
  

The board of directors of Voltas, a Tata enterprise, today announced the audited financial results and segment report for the year ended March 31, 2008.

The directors have recommended a dividend of 135 per cent for the year ended March 31, 2008 (previous year 100 per cent).

Financial performance highlights

Year ended March 31, 2008:

• Operating profit at Rs278 crore, up by 100 per cent
  
• Profit after tax excluding ‘net of tax’ exceptional / one-time items up by 86 per cent
  
• Profit after tax at Rs208 crore, up by 12 per cent
  
• Sales/income from operations at Rs3086 crore, up by 26 per cent
  
• EPS at Rs6.30 as against Rs.5.62
  
• Total order-book at Rs4872 crore up by 101 per cent

Year ended March 31, 2008
The company’s operating profit (Profit before tax and exceptional and one-time items) rose by 100 per cent to Rs278 crore as compared to Rs139 crore in the previous year. Profit after tax excluding ‘net of tax’ exceptional/one-time items rose by 86 per cent over the previous year. Profit after exceptional/one-time items and tax rose by 12 per cent to Rs208 crore (including exceptional income of Rs30 crore) as against Rs186 crore in the previous year which included exceptional income of Rs84 crore. Last year, in the fourth quarter, the company had a substantial one time gain from the sale of shares in one of its subsidiaries held by itself and its subsidiary. Sales / income from operations rose by 26 per cent to Rs3086 crore, as compared to Rs2451 crore in the previous year. Earnings per share works out to Rs6.30. (Face value of Re1 per share).

The company’s electro-mechanical projects and services segment grew by 21 per cent. In its international business, the company secured some very large and prestigious projects, including the Sidra Medical and Research Centre, Barwa City Project (Qatar), District Cooling Plant at DIFC (Dubai), Ferrari Experience Project, Formula 1 Racing track (Abu Dhabi), and District Cooling Plant at Sentosa Integrated Resort (Singapore). A major achievement in the domestic business has been the completion of the new Rajiv Gandhi International Airport in Hyderabad, in addition to the booking of some high value MEP projects, including the Dibrugarh Airport, Fortis Healthcare and the Neptune mall among others. The order pipe-line continues to be strong.

The segment’s order book as on March 31, 2008 stands at Rs4631 crore, 112 per cent increase over last year.

The engineering products and services segment registered growth of 33 per cent. Despite the slowdown in demand for capital equipment in many industrial sectors, textile machinery business achieved 20 per cent growth in equipment sales. Materials handling and mining & construction equipment businesses sustained their upward trend.

The unitary cooling products business segment achieved growth of 37 per cent, with 41 per cent growth in air conditioner sales over the previous year, including 45 per cent growth in the split AC segment. The company was amongst the pioneers in popularizing energy-efficient air conditioners, with its ‘Save Karo India’ campaign, which effectively stimulated the market and increased market share. Water coolers and dispenser’s sales grew by 32 per cent and remained at the No 1 market position.