Shares of Voltas hit a fresh record high of Rs 772.50, up 2.5 per cent on the BSE in the intra-day trade on Monday, after the company said its board has given "in-principle" approval for restructuring of B2B businesses.
The stock of the Tata Group consumer electronics company surpassed its previous high of Rs 768, touched on Friday, November 6, 2020. In the past three months, the stock outpaced the market by surging 30 per cent, as against 11 per cent rise in the S&P BSE Sensex.
"The directors have, in order to facilitate better focus on B2e Products businesses of the Company, agreed "in-principle" a proposal for restructuring of B2B businesses, comprising domestic projects business relating to MEP/HVAC and water projects and contracts, mining and construction equipment (M&CE) business and textile machinery division (TMD) by transferring them to a 100 per cent wholly owned subsidiary company - 'Rohini Industrial Electricals Limited (RIEL)', Voltas said in a regulatory filing.
The name of RIEL would also be appropriately changed to suitably represent and reflect these businesses. While the transfer of the aforesaid businesses would be on a slump sale basis as a going concern, the mode of transfer and other requirements are being looked into and necessary action and requisite approvals, as may be required would be taken, it said.
Meanwhile, Voltas reported a healthy performance in September quarter (Q2FY21) consolidated revenue grew by 13 per cent year-on-year (YoY) to Rs 1,613 crore led by revenue growth in all three segments. However, EBITDA (earnings before interest, taxes, depreciation, and amortisation) margin down by 140 basis points YoY to 6.1 per cent, due to lower profitability from project business. Profit after tax declined 26 per cent YoY to Rs 80 crore mainly due to lower margin and decline in other income.
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
RECOMMENDED FOR YOU