Voltamp Transformers Q4 Results: Stock tanks 19% after profit halves, margins narrow

Shares of Voltamp Transformers Ltd. fell as much as 19% on Tuesday, May 5, in response to its March quarter results, that were lower on a year-on-year basis.

The company's net profit halved from the base quarter, declining to ₹48 crore from ₹97 crore during the year-ago period. Restricted capacity and lower realisations also contributed to the drop in profitability.

Revenue for the quarter stood at ₹617.2 crore, a 1.2% drop from last year's figure of ₹624.8 crore. Revenue growth was expected to be lower due to weak execution and lower realisations.

Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter declined by 30% from the same quarter last year to ₹81.4 crore from ₹116.3 crore earlier.

EBITDA margin narrowed by over 500 basis points to 13.2% from 18.6% last year.

Shares of Voltamp Transformers are trading 19% lower after the earnings announcement at ₹10,164. The stock, despite this fall, is still trading 30% higher on a year-to-date basis.