Voltamp — Annual report 2024
Company review:
Company has posted an ever-highest sales and service revenue of ` 1616.22 crores as compared to ` 1385.10 crores in the previous year. The sales in term of volume increased to 13070 MVA as compared to 11883 MVA in the previous year. The Profit Before Tax (PBT) increased to ` 397.88 crores, as compared to ` 260.37 crores in the previous year and Profit After Tax (PAT) increased to ` 307.08 crores, as compared to ` 200.49 crores in the previous year.
Management Discussion and analysis:
Going forward, business outlook looks stable, aided by steady growth in domestic demand and the Government’s thrust on green energy and infrastructure spending and also PLI lead investment. Competitive pressures are back, limiting scope for expanding margin.
The Company is gearing up to meet up with increased competitive pressures in market with many players from unorganized segment and sick/ partially functioning players getting revived with the increased opportunities. In changed scenario, customers have better bargaining power in terms of prices and terms. This will impact realisation. Enquiry pipelines is healthy and is expected to continue. The Company is aiming for full utilisation of manufacturing capacity ensuring healthy growth of SALES & SERVICES revenue, in value and volume terms.
The opening order book at 1st April, 2024 is 840.66 crores (7839 MVA). The Company will continue pursuing only profitable growth opportunities ensuring balance sheet health.
Capacity expansion:
The Company has identified suitable plot of land to put up new power transformer factory near Jarod village on Vadodara — Halol Road in Gujarat. Requisite permission / approval will be in place by end of June 2024. The new CAPEX will be funded from internal accruals.
Management remuneration:
1% of net profit , paid to MD’s as remuneration. Not much change compared to previous years.
Historical financials:
Company has grown its sales every year since FY15, except got FY21 which was the covid year and has grown its PAT every year since FY 15, PAT grew during covid year as well.
Other income:
Net gain on financial assets was almost 53.67 crs and interest income from bonds 21.3 cr. Co has mutual funds worth 557 crs(equity 84 crs and debt 442 crs) as on 31st March 2024. Company continues to be well funded, although the rational of holding so much cash via mutual funds and bonds is still not clear. Company has also paid 90rs dividend in FY24
Other expenses:
Other expenses particularly commission and travelling as % of sales has increased marginally.
Travelling and conveyance as % of sales is 0.45% compared to 0.35% a year before. Sales and commissions are up from 0.1% to 0.15%.