The Hindu Business Line : Voltas net up 143% on better margins

Mumbai, Jan. 25 Tata group company Voltas Ltd has posted a net profit of Rs 47.22 crore for the December quarter, up 143 per cent compared with Rs 19.43 crore in the same period last year.

The turnover for the quarter was at Rs 664.76 crore, up 16.84 per cent compared with Rs 568.92 crore for the same period last year.

“Our profits are up by a greater percentage than our sales because we have chosen projects which give us better margins. The order book for our electro-mechanical projects and services sector rose 40 per cent as compared to 2006, to Rs 3,500 crore,” said Mr Miyajiwala, Chief Financial Officer.

The company has secured an order book of Rs 2,000 crore internationally and Rs 1,000 crore domestically for the year 2008, he added.

The company closed down its non-profitable civil construction business last year, increasing the profitability of the company, he explained.

In December 2007, the board approved purchase of 51 per cent shares in Saudi Ensas for Engineering Services Ltd and 50 per cent shareholding in Universal Comfort Products Pvt Ltd, according to a company release.

Engg products

The revenue of the engineering products and services segment of Voltas grew 37 per cent, with the major contributor being mining and construction equipment business that grew 98 per cent and textile machinery business, which grew 19 per cent.

The unitary cooling products segment saw a revenue growth of 39 per cent, with the air conditioner business growing 36 per cent and water coolers and dispensers growing 23 per cent in volume.

The company’s scrip closed on Friday at Rs 209.90, up 6.93 per cent against the previous day’s close of Rs 196.30.

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