Tata Group Stock Posted 21% Fall In Q4 Net Profit, Mutual Fund Stake Up In March 2023 Quarter

“The Directors have recommended Dividend of Rs.4.25 per share on face value of Re.1 per share (425%) for the year 2022-23 which shall be subject to approval of shareholders at the ensuing 69th Annual General Meeting of the Company," said Voltas in a stock exchange filing.

The company reported a decline of 21.6 per cent in its consolidated net profit to ₹143.23 crore in the March 2023 quarter as against a net profit of ₹182.71 crore in the year-ago quarter.

In the FY 2022–23 under review, operating revenue grew 11.5% to ₹2,936.76 crore from ₹2,633.72 crore in the previous fiscal year. In Q4FY2022-23, Voltas' overall sales grew by 11.08% to ₹3,003.46 crore, while its overall expenses climbed by 13.75% to ₹2,761.45 crore. According to the company, sales from "unitary cooling products for comfort and commercial use" reached ₹2,048.62 crore in the fourth quarter of FY23, which is a rise of 12.65% from ₹1,818.41 crore in the year-ago quarter. 

The company's revenue from electro-mechanical projects and services climbed 7.8% in the March quarter to ₹745.79 crore from ₹691.81 crore in Q4FY22. Voltas' revenue from engineering products and services jumped by 15.26% in the January-March quarter, from ₹123.50 crore in Q4FY22 to ₹142.35 crore in Q4FY23. Compared to a net profit of ₹506 crore in FY22, Voltas' consolidated net profit for FY23, which ended in March 2023, fell by 73.07 percent to ₹136.22 crore. In FY 2022–23, its operating revenue grew by 19.87% to ₹9,399.37 crore whereas in FY22, it was ₹7,841.07 crore.

“The outlook for UCP segment is bright, aided by mounting demand for room air-conditioners and commercial cooling products. Prospects for the projects business appear bright considering strong order book. Timely execution is the key to margins, which dipped in FY23. Post-FY23 results, we have raised our FY24e/FY25erevenue/net income an average of 4%/11%. We upgrade the stock to a Buy, with a 12-mth TP of Rs973 as we value each business and the JV with Beko separately. At the CMP, the stock quotes at 52x/37x the FY24e/FY25e EPS of Rs15.5/ 22.1," said Anand Rathi post Q4 earnings of Voltas.

On Friday, the shares of Voltas closed on the NSE at ₹798 apiece, down by 1.29% from the previous close of ₹808.40. During Q4FY23, the company recorded a promoter shareholding of 30.30%, FIIs stake of 20.58%, DIIs stake of 33.14%, Govt stake of 0.21% and a public stake of 15.78%.

As per the data of Trendlyne, promoters holding was flat at 30.30% in March 2023 quarter, FII/FPI stake plummeted from 21.58% in December 2022 quarter to 20.58% in March 2023 quarter, mutual funds stake grew from 14.09% in Q3FY23 to 14.94% in Q4FY23 and institutional investors have increased holdings from 53.26% to 53.94%.