Earnings review: Voltas shares drop over 9% on weak Q4 results; should you still buy?

livemint.com:

Voltas lost over 9 percent in intra-day deals today after the firm posted weak results for the quarter ended March 2024 (Q4FY24). This is the third straight session of decline for the FMEG firm, losing over 15 percent in this period. The firm reported a 22.75 percent drop in its consolidated net profit at ₹110.64 crore for Q4FY24 as against ₹143.23 crore in the corresponding period last year on the back of higher expenses.

Meanwhile, the air conditioning and engineering services provider's revenue from operations in the quarter under review rose 42 percent to ₹4,203 crore from ₹2,957 crore in the year-ago period. The total expenses in the fourth quarter came in at ₹4,044.90 crore versus ₹2,761.45 crore in the corresponding period a year ago. On the operating front, the home appliances manufacturer recorded a 340 basis point sequential drop in its EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margin.

The stock fell as much as 9.1 percent to its day's low of ₹1,261.65. Despite today's fall, the scrip is still over 69 percent above its 52-week low of ₹745, hit on July 14, 2023. Meanwhile, it has declined almost 16 percent from its record high of ₹1,500, hit earlier this month on May 2, 2024.

The stock has jumped over 72 percent in the last one year and over 29 percent in 2024 YTD. Overall, for the fiscal ended March 31, 2024 (FY24), the consolidated net profit soared over 82 percent to ₹248.11 crore from ₹136.22 crore in the previous year. Meanwhile, its consolidated revenue from operations increased by 31.4 percent in FY24 to ₹12,481.21 crore, compared to ₹9,498.77 crore in FY23.