Rs 5.50 Dividend Declared: Tata Stock Reports 19% Decline In Net, Shares Slip 4%

Tata Group stock Voltas Ltd shares slipped 4.06% intraday today to settle at Rs 1388.45 per share. The Board of Directors of Voltas recommended a dividend of Rs 5.50 per share on the face value of Re 1 per share for the year 2023-24. Voltas shares slipped 5.87% in last 1-week and soared 131% in last 5-years. The company reported a decline of 19% in its consolidated net profit to Rs 116 crore for the quarter ended March 31, 2024. Voltas has a PE of 80.54 and ROE of 7.94. More details below:

Voltas Q4: The leading company today announced a fall of 19% in consolidated net profit, attributable to owners, at Rs 116 crore for the quarter ended March 31, 2024 as against the net profit of Rs 144 crore reported in the corresponding quarter of last year. However, its consolidated revenue from operation surged 42% to Rs 4,203 crore for Q4 financial year 2024 as against Rs 2957 crore reported in the similar quarter of last year. Voltas' EBITDA declined 13% to Rs 190.6 crore as compared to Rs 218 crore in the year-ago period. Its margins slipped 290 basis point in Q4FY24 to 4.5% as against 7.38% in Q4FY23.

Voltas Recommends Dividend: As per the BSE filing of Voltas dated May 7, 2024, "The Directors have recommended Dividend of Rs.5.50 per share on face value of Re.1 per share (550%) for the year 2023-24 which shall be paid/despatched on or after fifth day from conclusion of ensuing 70th Annual General Meeting, subject to approval of shareholders of the Company. The Meeting of the Board of Directors commenced at 12.00 noon and concluded at 6.10 p.m."

Voltas Share Performance: The 52-week high price of Voltas share on BSE is Rs 1500.00 apiece (as on 02/05/2024) and 52-week low price is Rs 745.00 per share (as on 14/07/2023), respectively. Voltas has a PE of 75.43 and EPS (TTM) of 2.94. Voltas shares declined over 5% in last 1-week, jumped over 42% YTD, rallied 71% in last 6-months, and offered return of 74% in last 1-year. In last 2-years, Voltas stock surged 30% and 43% in last 3-years.

Voltas JV With Arcelik: Reports stated the Voltas' joint venture (JV) with Turkey's Arcelik may offer massive boost to the profitability and market share as it is likely to break even in financial year 2026. According to UBS, "We expect an incremental revenue growth of Rs 10,000 crore, a 60 percent of FY27 revenue in consumer electronics." Earlier in 2017, the two firms established a $100 million JV to debut in the country's consumer durables market. The JV known as Voiltbek in engaged in the manufacturing of washing machines, refrigerators, and microwave, among others in India. Voltas and Arelik hold 49% in the JV and their respective parent companies namely Tata Group and KOC Holding hold 1% each, as per reports.

About: Voltas offers a comprehensive range of cooling solutions including room air conditioners, air coolers, air purifiers, water dispensers, water coolers, commercial refrigeration and commercial air conditioning products in its portfolio. Voltas is one of the leading companies within the Tata group with a footprint of over 25,000 customer touchpoints. It has also recently launched a range of Voltas Beko home appliances, through its JV in India, in equal partnership with Arcelik.

Disclaimer: The stock highlights the dividend, Q4 and is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on the stock mentioned. Neither, the author nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisor.