PL First Cut – Voltamp Transformers (VAMP) Q3FY24 Result– Strong operating performance

PL First Cut – Amit Anwani – Research Analyst, Prabhudas Lilladher Pvt Ltd

Voltamp Transformers (VAMP) Q3FY24 Result First Cut – Strong operating performance

(CMP: Rs7,900 | Mcap: Rs79bn | Rating: HOLD)

▪️Revenue rose 14.3% YoY to Rs4.1bn (PLe: Rs4.3bn).

▪️Gross margin expanded by 951bps YoY to 33.4% (PLe: 27.3%) on the back of softening raw material prices.

▪️EBITDA grew 89.2% YoY to Rs1.0bn (PLe: Rs722mn). EBITDA margin jumped by 1,019bps YoY to 25.7% (PLe: 16.9%), owing to the gross margin expansion and reversal of certain past period provisions.

▪️PBT jumped 90.3% YoY to Rs1.3bn (PLe: Rs790mn).

▪️PAT grew 86.4% YoY to Rs946mn (PLe: Rs592mn), driven by a robust operational performance and higher other income at Rs248mn (up 80.6% YoY due to improved income from the investment portfolio).

▪️Q3FY24 order inflow came in at Rs4.9bn (4,697 MVA).

The stock currently trades at 33.0x/29.4x FY25/26E earnings.