Voltas Limited is a Tata group company which has registered market cap of 26,434.38 crore during Friday’s closing session. This large-cap stock has declared 425% dividend to its eligible shareholders despite weak net profit in Q4.
“The directors have recommended a dividend of Rs 4.25 per share on face value of Re 1 per share (425%) for the year 2022-23, subject to the approval of the shareholders in the forthcoming 69th Annual General Meeting of the company. said Voltas in a stock exchange filing.
The company reported a 21.6 percent decline in its consolidated net profit 143.23 crore in the March 2023 quarter against a net profit of Rs. 182.71 crore in the year-ago quarter.
In the financial year under review 2022-23, operating revenue increased by 11.5% 2,936.76 crores from 2,633.72 crore in the last financial year. In Q4FY2022-23, Voltas Net Sales Grow By 11.08% 3,003.46 crore, while its total expenditure climbed 13.75% 2,761.45 crores. According to the company, sales of “unitary cooling products for comfort and commercial use” reached 2,048.62 crore in Q4 of FY23, which is a growth of 12.65% 1,818.41 crore in the year-ago quarter.
Company’s revenue from electro-mechanical projects and services climbed 7.8% in the March quarter 745.79 crore from 691.81 crore in Q4FY22. Voltas revenue from engineering products and services up 15.26% in January-March quarter 123.50 cr in Q4FY22 from 142.35 crore in Q4FY23. compared to net profit of 506 cr in FY22, Voltas’ consolidated net profit for FY23, ending March 2023, down 73.07 per cent 136.22 cr. In FY 2022-23, its operating revenue to grow by 19.87% 9,399.37 crore while in FY22, it was 7,841.07 crores.
“The outlook for the UCP segment is bright, aided by rising demand for room air conditioners and commercial cooling products. Prospects for the project business look bright given the strong order book. Timely execution is the key to margins, which had dipped in FY23. Post FY23 results, we have grown our FY24e/FY25erevenue/net income by an average of 4%/11%. We upgrade the stock to Buy with a 12 month TP of Rs 973 as we look at Beko’s Also value each business and JV separately. On CMP, the stock quotes at 52x/37x FY24e/FY25e EPS at Rs 15.5/22.1,” said Anand Rathi after Voltas’ Q4 earnings call.
Voltas shares on NSE on Friday Down 1.29% from previous close of 798 808.40. During Q4FY23, the company registered promoter shareholding of 30.30%, FII holding of 20.58%, DII holding of 33.14%, Government holding of 0.21% and Public holding of 15.78%.
As per Trendline data, promoters holding was stable at 30.30% in the March 2023 quarter, FII/FPI holding fell from 21.58% in the December 2022 quarter to 20.58% in the March 2023 quarter, Mutual Fund holding in Q3FY23 increased from 14.09% to 14.94% in Q4FY23 and institutional investors have increased holding from 53.26% to 53.94%.
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