VOLTAS
Article Abstract:
Voltas of the Tata group has interests in diversified businesses due to which it suffered a loss in 1996-97. It incurred a loss of Rs16.82 crore in 1996-97. The company has now taken up a restructuring programme. It has several loss making divisions like its thermostat unit, granite and switchgear businesses. The white goods division of the company has taken up job work for players like Electrolux, LG and Samsung. Voltas is also selling its stake in Merind to Wockhardt. The Voltas scrip is currently being traded for Rs48.40. (uh) ------------------------------------------------------------ Financial Performance of Voltas (Rs in crore) ------------------------------------------------------------ Particulars Six months ended Six months ended September 1997 September 1996 ------------------------------------------------------------ Sales 679.11 723.69 ------------------------------------------------------------ Gross profit 4.77 5.86 ------------------------------------------------------------ Depreciation 11.75 10.76 ------------------------------------------------------------ Net Loss 6.98 4.90 ------------------------------------------------------------ Equity 34.29 33.05 ------------------------------------------------------------ Earnings per share (Rs) -2.04 -1.48 ------------------------------------------------------------
Comment:
Incurs loss of Rs16.82 crore in 1996-97 due to several of its loss making divisions
Publication Name: Dalal Street Journal
Subject: Business, international
ISSN:
Year: 1998
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VOLTAS
Article Abstract:
Voltas Ltd of the Tata group, comprises 12 divisions. During 1997- 98, Voltas decided to exit from its non core business and focus on air conditioning and engineering. Voltas earned 11.6 percent of its total revenue in 1997-98 from air-conditioners. It manufactures ACs at two plants having a total capacity of 75,000 units per annum. It launched capacity at its Dadar plant. Voltas Engineering division manufacturers a wide variety of diesel and electric forklifts trucks of capacity ranging from 1.5 tonne to 45 tonnes. It also makes P&H omega hydraulic cranes of 20-50 tonnes capacity. It holds 50 percent market share in this sector. The division also markets machine and cutting tools manufactured by 30 companies in India and abroad. Voltas earned 15 percent of its total revenues in 1997-98 from turnkey jobs. Its largest project to date has been the International Technology Park at Bangalore. The company also markets textile machinery steel furniture, capillary and LPG cylinders. Voltas proposes to expand refrigerator capacity for which it has a technological tie up with Hitachi of Japan. A new plant is proposed at Pondicherry for larger packaged ACs. It has tied up with Listas of Switzerland to expand its office furniture business. These plans are estimated to cost Rs2 billion. (uh)
Publication Name: Financial Express Investment Week
Subject: Business, international
ISSN: 0015-2005
Year: 1998
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VOLTAS: ON THE WAR-PATH
Article Abstract:
Voltas Ltd of the Tata group has interests in chemicals, machinery, project management, granites, white goods and pharmaceuticals. This unrelated diversification has taken its toll on the company with its loan portfolio at Rs3,266 million in 1997-98. The profitability of Voltas suffered due to high interest cost and low margins due to severe competition. Its subsidiaries also generated negative returns. Premium Granite Ltd (PGL), its subsidiary has accumulated losses of over Rs192 million and Perfect Moulds Ltd (PML) has accumulated losses of more than Rs38 million. Voltas is now implementing a restructuring plan, by which it will adhere to its core strength engineering and back up services. It will hive off or sell unrelated businesses. Voltas sold the shares of Merind for Rs140 million and its chemical manufacturing division for Rs750 million to Rallis. Voltas has formed a joint venture with Electrolux in the white goods sector. It is also hopes to earn Rs100 million per annum by leasing out its prime properties in Chennai and Mumbai. Surplus cash thus generated will be utilised to pay off its debts. (uh)
Comment:
Voltas Ltd of the Tata group has interests in chemicals, machinery, project management, granites, white goods and pharmaceuticals.
Publication Name: Financial Express Investment Week
Subject: Business, international
ISSN: 0015-2005
Year: 1998
User Contributions:
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