OREANDA-NEWS. The Board of Directors of Voltas Limited, the global air conditioning and engineering services provider of the Tata Group, today announced the Consolidated Unaudited Financial Results (including the Consolidated Segment Report) for the quarter and six months ended 30th September, 2014.

Consolidated Results for Six Months period ended 30th September, 2014:

The Consolidated Sales/Income from Operations for the six months period ended 30th September, 2014 was higher by 1.6% at Rs2721 crores as compared to Rs2678 crores in the corresponding period last year. Profit from Operations before Other Income, Finance Costs and Exceptional items was however significantly higher at Rs197 crores as compared to Rs81 crores in the corresponding period last year. Profit before Tax and Net Profit (after Minority Interest) was higher at Rs232 crores and Rs159 crores, respectively, as compared to Rs121 crores and Rs83 crores for the corresponding period last year. Consequently, Earnings per Share (not annualized) stood at Rs4.80 as at 30th September 2014, as compared to Rs2.51 as at 30th September 2013 (Face Value per share of Rs1).

Consolidated Results for quarter ended 30th September, 2014:

The Consolidated Sales/Income from Operations for the quarter ended 30th September, 2014 was at Rs969 crores as compared to Rs1077 crores in the corresponding quarter last year. However, due to better margin realizations and cost controls, the Profit from Operations, before Other Income, Finance Costs and Exceptional items was higher at Rs71 crores for the current quarter as compared to Rs36 crores in the corresponding quarter last year. Profit before Exceptional Items & Tax was also higher at Rs85 crores as compared to Rs62 crores in the corresponding quarter last year. Net Profit after Minority Interest was higher at Rs50 crores as compared to Rs42 crores in the corresponding quarter last year. Earnings per Share (not annualized) was higher at Rs1.51 as compared to Rs1.28 in the corresponding quarter last year (Face Value per share of Rs1).

Consolidated Segment Results for the quarter ended 30th September, 2014:

Electro-Mechanical Projects and Services: Segment Revenue was at Rs525 crores as compared to Rs671 crores in the corresponding quarter last year, largely on account of drop in turnover of International projects. Segment Result was at Rs 5 crores, by and large at par with the corresponding quarter last year.

The Order Book of the Segment stood at Rs3679 crores as compared to Rs4349 crores in the corresponding quarter last year. Given the environment, the Company is cautiously building up its order book, both in India and overseas. During the current quarter, the Company has booked orders for electrification of 2000 villages in the districts of Mandla and Dindori of Madhya Pradesh, valuing Rs104 crores.

In the previous years, due to significant upward revision in estimated cost of a major project in Qatar, Sidra Medical and Research Centre, the Company accounted for cost overrun in accordance with the requirement of Accounting Standard (AS) 7. In July-2014, the Main Contractor was terminated by the end customer (Qatar Foundation) and a new main contractor was appointed. As provided in the original contract, Qatar Foundation has asked for the assignment of contracts of select subcontractors to the new main contractor. However, a formal understanding to that effect is yet to be reached. Uncertainties in the completion schedule, assignment of the sub-contracts and approval of variations/claims continue, which could modify the Company's current estimates of cost and entitlements. Nevertheless, the Company continues to pursue its entitlements vigorously.

Engineering Products and Services: Segment Revenue and Result were at Rs87 crores and Rs32 crores as compared to Rs126 crores and Rs28 crores respectively, in the corresponding quarter last year. Though the turnover of Mining & Construction Equipment business was lower, margins from Service activities in Mozambique were better in current quarter as compared to the corresponding quarter last year. Performance of Textile Machinery business, both in terms of Revenue and Result was also better than the previous year.

Unitary Cooling Products for Comfort and Commercial use: Segment Revenue was higher at Rs345 crores as compared to Rs264 crores in the corresponding quarter last year. Similarly, Segment Result was better at Rs43 crores as compared to Rs29 crores in the corresponding quarter last year on account of higher sales volumes and improved margins. The Company maintains its market leadership in room air conditioners and is No.1 at Multi-Brand Outlets, based on GFK Nielsen Retail Audit findings.