PL First Cut – Voltamp Transformers (VAMP) 2QFY24
Prabhudas Lilladher Pvt Ltd
PL First Cut – Voltamp Transformers (VAMP) 2QFY24 – Amit Anwani – Research Analyst, Prabhudas Lilladher Pvt Ltd
Voltamp Transformers (VAMP) 2QFY24 Results-First Cut; Strong performance: Beat on all front
Result summary
✳️Sales grew 20.1% YoY to Rs3.8bn (PLe of ~Rs3.7bn and Consensus estimate of Rs4bn), driven by strong execution of opening order book.
✳️Gross margin expanded to 29.3% in Q2FY24 vs 23.8% in Q2FY23, due to softening of commodity prices.
✳️EBITDA grew 48.3% YoY to Rs688mn (PLe Rs549mn and consensus estimate of Rs646mn), with EBITDA margins expanding 343bps YoY to 18% (PLe ~15%), mainly due to gross margin expansion.
✳️PAT came in at Rs684mn (up 49% YoY) (PLe ~Rs465mn and consensus estimate of Rs594), driven by strong operating performance.
✳️At the CMP, the stock is currently trading at 22x/19.1x FY24/25E. We have Hold rating on the stock with TP of Rs4,611. We may revise our estimate post discussion with management.