(Reuters) – India’s Voltas posted a profit in the third quarter on Wednesday, compared to a loss a year earlier, helped by higher demand for household appliances during the festive period.
The company, which makes air conditioners and coolers, reported a consolidated net profit of 1.32 billion rupees ($15.3 million) for the quarter ended Dec. 31, compared to a loss of 304.1 million rupees a year ago.
Voltas’ revenue from operations rose 18% to 30.87 billion rupees.
For further earnings highlights, (click here).
KEY CONTEXT
Indian consumers tend to buy more household products during the festive period, which coincides with the October-December quarter.
However, some manufacturers of consumer electrical goods have faced challenges due to fluctuating commodity prices and heightened competition, pressuring their profit margins.
Peer Polycab missed profit estimates for the quarter as its wires business was impacted by commodity price fluctuations.
PEER COMPARISON
Valuation (next 12 Estimates (next 12 Analysts’ sentiment
months) months)
RIC PE EV/EBI Price/ Revenue Profit Mean # of Stock to Div
TDA Sales growth (%) growth (%) rating* analyst price yield
s target** (%)
Voltas 41.66 33.40 2.53 16.06 37.18 Hold 33 0.82 0.38
Havells India 52.61 35.80 3.94 14.91 23.09 Buy 24 0.81 0.67
Crompton Greaves 31.64 21.56 2.39 12.36 25.92 Buy 32 0.71 0.88
Consumer Electricals
Polycab India 37.87 25.94 3.36 18.01 19.00 Buy 26 0.76 0.53
OCTOBER-DECEMBER STOCK PERFORMANCE
— All data from LSEG
— $1 = 86.5330 Indian rupees
(Reporting by Ashna Teresa Britto; Editing by Sonia Cheema)
