(Reuters) -Air conditioning manufacturer Voltas reported a quarterly profit on Friday that missed estimates by a wide margin as early monsoons dampened demand for residential cooling products.
Net profit fell nearly 58% to 1.4 billion rupees ($15.97 million) in the first quarter from 3.34 billion rupees a year ago.
Analysts on average were expecting a profit of 2.27 billion rupees, according to data compiled by LSEG.
Revenue from operations also fell 20% to 39.39 billion rupees, steeper than the roughly 10% drop that analysts were expecting.
KEY CONTEXT
Early onset of monsoon hit summer portfolios of companies ranging from Dabur, which makes cold beverages, to AC and fan manufacturers such as Blue Star and V-Guard.
“The onset of summer was delayed and the season concluded abruptly due to early monsoon,” Voltas said in a press release.
The steeper impact was driven by a high base a year ago, Voltas added, when “a harsh and prolonged summer drove record sales.”
PEER COMPARISON
Valuation (next 12 Estimates (next 12 Analysts’ sentiment
months) months)
RIC PE EV/EBI Price/ Revenue Profit Mean No.
of Stock to Div
TDA Sales growth (%) growth (%) rating* analyst price yield
s target** (%)
Voltas 42.97 32.90 2.36 9.43 15.64 Buy 34 0.94 0.53
Crompton Greaves 29.49 19.31 2.22 10.73 17.44 Buy 31 0.76 0.94
Consumer
Electricals
Blue Star 51.41 34.32 15.28 18.43 Hold 19 1.00 0.49
Havells India 50.61 33.30 3.78 11.03 15.66 Buy 28 0.87 0.67
* The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** The ratio of the stock’s last close to analysts’ mean price target; a ratio above 1 means the stock is trading above the PT
APRIL TO JUNE STOCK PERFORMANCE
— All data from LSEG
— $1 = 87.6900 Indian rupees
(Reporting by Ananta Agarwal in Bengaluru; Editing by Eileen Soreng)
