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What is the story about?
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. Sales growth for the full year is at the slowest pace since financial year 2022.
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. Margins are at the lowest level since June 2023.
The company reported negative other income during the quarter, which is due to forex losses. Additionally, it also announced a capex of ₹25 crore to acquire a new plot near Vadodara, which will be funded through internal accruals.
Order backlog at the end of the quarter stood at ₹1,200 crore from ₹1,129 crore last year.
Shares of Voltamp Transformers are trading 20% lower after the earnings announcement at ₹10,062. The stock, despite this fall, is still trading 30% higher on a year-to-date 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. Sales growth for the full year is at the slowest pace since financial year 2022.
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. Margins are at the lowest level since June 2023.
The company reported negative other income during the quarter, which is due to forex losses. Additionally, it also announced a capex of ₹25 crore to acquire a new plot near Vadodara, which will be funded through internal accruals.
Order backlog at the end of the quarter stood at ₹1,200 crore from ₹1,129 crore last year.
Shares of Voltamp Transformers are trading 20% lower after the earnings announcement at ₹10,062. The stock, despite this fall, is still trading 30% higher on a year-to-date basis.
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