Voltas’ 2QFY10 Sales at Rs10bn Grew 9% YoY and 2QFY10 PAT at Rs807mn grew 36% YoY. The earnings beat was primarily due to higher than expected EBITDA margins of 10.6% (up 296bps YoY and 282bps ahead of estimates) as the company benefited from lower cost inventory in this quarter and continued cost reduction efforts.
The sales in 2QFY10 were affected by a sharp decline in revenue in the Engineering products and services segment (down 28% YoY) and slower execution in domestic MEP business due to problems faced by customers
2QFY10 Order Book at Rs43.6bn Fell 22% YoY as the company managed to win only ~Rs3bn of orders in domestic business and no new orders in international business in 2QFY10
BOFA_Merrill expects Voltas to report an EPS of 9.87 and 11.49 for fy10 and fy11 respectively.
Citi expects Voltas to report an EPS of 8.15 and 9.75 for fy10 and fy11 respectively.
Anand Rathi expects Voltas to report an EPS of 8.4 and 8.6 for fy10 and fy11 respectively.
Do NOT BUY the stock as upside potential appears to be LIMITED.