VOLTAS LIMITED - First quarter results - Q1 FY 2013 - NET SALES (CONSOL) : UP YoY; BUT NET PROFIT (CONSOL) DOWN YoY SEVERELY; STANDALONE NET PROFIT DOWN 49% YoY

VOLTAS LIMITED

First quarter results

Q1 FY 2013

VOLTAS LIMITED has declared below Par results for the first quarter ending June,2012.

HIGH LIGHTS (NON-CONSOLIDATED)

Net Sales for Q1 FY 13stands at Rs.1674.42 Cr; up by 3.36 % from Q4 FY 12 (Rs.1620.05 Cr); and up by  21.34% from Q1 FY 12 (Rs.1379.92 Cr). Sales Growth is Healthy.

Total Expenditure for Q1 FY 13stands at Rs.1613.60 Cr; up by   7.76% from Q4 FY 12 (Rs.1497.42 Cr); and up by  23.85% from Q1 FY 12 (Rs.1302.87 Cr). The Expenditure has grown more than proportionately compared to the Total Income.

Profit  before Interest, Dep. & Taxes for Q1 FY 13stands at Rs.60.82 Cr; down  by -50.4% from Q4 FY 12 (Rs.122.63 Cr); and down by  -21.06% from Q1 FY 12 (Rs.77.05 Cr).

Net Profit for Q1 FY 13stands at Rs.64.01 Cr; down by   -37.07% from Q4 FY 12 (Rs.101.72 Cr); and down by  -49.08% from Q1 FY 12 (Rs.125.70 Cr). Profit has fallen drastically, due to increase in expenditure – especially Raw Materials and Other Expenses.

Diluted EPS , on A Face Value of Rs.1, for Q1 FY 13stands at Rs.1.93; compared to Rs.3.07 in Q4 FY 12; and Rs.3.8 in Q1 FY 12.

52 week high/low price : Rs.140.05/71.65; CURRENT MP : Rs.105.05;

RESULTS TABLE

VOLTAS LTD	30-Jun-12	QoQ % dif	31-Mar-12	YoY % dif	30-Jun-11
Net Sales	167442	3.36	162005	21.34	137992
Total Expenditure	161360	7.76	149742	23.85	130287
Profit  before Interest, Dep. & Taxes	6082	-50.4	12263	-21.06	7705
Net Profit	6401	-37.07	10172	-49.08	12570
Diluted EPS	1.93	-37.13	3.07	-49.21	3.8
Net Sales	167442	3.36	162005	21.34	137992
Cost of materials	69429	-5.3	73318	33.88	51858
Purchases of SIT	57175	-4.66	59968	0.97	56623
Employee benefits	15233	16.46	13080	12.65	13523
Depreciation	598	21.05	494	-34.36	911
Other expenses	14433	27.21	11346	26.89	11374
Total expenses	161360	7.76	149742	23.85	130287
Profit before tax1	9209	-32.36	13614	-49.86	18365
Tax Expenses	2808	-18.42	3442	-51.54	5795
Net Profit	6401	-37.07	10172	-49.08	12570
Face Value of Share (Rs )	1	0	1	0	1
Paid-up Equity	3307	0	3307	0	3307
Diluted EPS	1.93	-37.13	3.07	-49.21	3.8
Public Shareholding (%)	69.85	0	69.85	0.58	69.45

NOTES : During the previous year there had been a significant upward revision in the estimated costs of a major project and the Company had accounted  for the same in accordance with the requirements of Accounting Standard (AS7). However, uncertainties exist due to the complex nature of the  ‘design and build’ project, changes in design being made by the client and delay in completion of the project. The Company is closely monitoring  the project and is of the view that adequate provision has been made after considering the further upward revision in costs during the quarter and variations and claims being negotiated.

CONSOLIDATED RESULTS

Income from Operations

Ø  Net Sales / Income from Operations (Net of excise duty) : Rs.1611.57 Cr (Q1 FY 13); Rs. 1573.46 Cr (Q4 FY 12); Rs. 1345.75 Cr (Q1 FY 12)

Ø  Total income from operations (Net) Rs. 1616.82 Cr (Q1 FY13); Rs. 1574.43 Cr(Q4 FY 12); Rs. 1348.42 Cr (Q1 FY12).

Ø  Total Expenses : Rs. 1530.21 Cr (Q1 FY 13); Rs. 1444.23Cr (Q4 FY 12; Rs. 1247.97 Cr (Q1 FY 12).

Ø  Profit  from operations : Rs. 86.61 Cr(Q1 FY 13); Rs. 130.20 Cr (Q4 FY 12); Rs. 100.45 Cr (Q1 FY 12);

Ø  Profit  before tax  :Rs. 110.57 Cr (Q1 FY 13); Rs. 140.68 Cr (Q4 FY 12); Rs. 190.30 Cr (Q1 FY 12)

Ø  Tax expenses : Rs.31.60 Cr (Q1 FY 13); Rs.35.95 Cr (Q4 FY 12); Rs. 58.05 Cr(Q1 FY 12);

Ø  Net Profit : Rs. 79.12 Cr (Q1 FY 13); ; Rs.103.81 Cr(Q4 FY 12) ; Rs. 131.79 Cr(Q1 FY 12) ;

Ø  Paid-up equity share capital : Rs.(Face value 1/- each)Rs. 33.07 Cr.

Ø  Reserves excluding Revaluation Reserves (as per balance sheet of previous accounting year) : Rs.1444.77 Cr.

Ø  Diluted Earnings per share : (not annualised) Rs.2.39 (Q1 FY 13); Rs.3.14 (Q4 FY12); Rs.3.98 (Q1 FY12).

NOTES :

Exceptional Items - Net :

(a)  For the quarter ended 30th June, 2012  (quarter ended 30th June, 2011) comprises :

Profit on sale of properties – Rs.116 lakhs  (Rs. 212 lakhs), Profit on transfer of Materials Handling business - Nil (Rs. 7935 lakhs) and Charge of  Voluntary Retirement Scheme / Early Separation Scheme – Rs. 5 lakhs (Nil).

(b) For the quarter ended 31st March, 2012 comprises :

Profit on sale of properties – Rs.72 lakhs, Provision for diminution in value of investments written back – Rs.141 lakhs and Charge of Voluntary Retirement Scheme / Early Separation Scheme – Rs.8 lakhs

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