Sie sind auf Seite 1von 14

Q.1.

Share Price Trend analysis

Date Closing Date Closing Date Closing


Price Price Price
4/1/2014 156.350006 1/1/2016 286.549988 10/1/2017 567.6
5/1/2014 186.699997 2/1/2016 223.399994 11/1/2017 636.6
6/1/2014 218.050003 3/1/2016 278.100006 12/1/2017 655.9
7/1/2014 192.25 4/1/2016 293.5 1/1/2018 605
8/1/2014 244.649994 5/1/2016 335.899994 2/1/2018 609.4
9/1/2014 241.600006 6/1/2016 322.25 3/1/2018 620.9
10/1/2014 251.399994 7/1/2016 349.549988 4/1/2018 642.5
11/1/2014 270.549988 8/1/2016 390.299988 5/1/2018 539.95
12/1/2014 242.5 9/1/2016 379.100006 6/1/2018 523.8
1/1/2015 268.600006 10/1/2016 386.700012 7/1/2018 567.95
2/1/2015 256.200012 11/1/2016 315.850006 8/1/2018 614.8
3/1/2015 279.850006 12/1/2016 328.25 9/1/2018 532.2
4/1/2015 281.100006 1/1/2017 326.950012 10/1/2018 540.25
5/1/2015 332.950012 2/1/2017 373.5 11/1/2018 553.95
6/1/2015 315.299988 3/1/2017 412.100006 12/1/2018 553.5
7/1/2015 317.600006 4/1/2017 411.049988 1/1/2019 541.1
8/1/2015 272.950012 5/1/2017 486.350006 2/1/2019 566.55
9/1/2015 268.299988 6/1/2017 457.25 3/1/2019 629.45
10/1/2015 283.450012 7/1/2017 504.25 4/1/2019 602.7
11/1/2015 289.100006 8/1/2017 524.75
12/1/2015 324.299988 9/1/2017 506.049988

Closing Price
350

300

250

200

150

100

50

0
4/1/2014
5/1/2014
6/1/2014
7/1/2014
8/1/2014
9/1/2014
10/1/2014
11/1/2014
12/1/2014
1/1/2015
2/1/2015
3/1/2015
4/1/2015
5/1/2015
6/1/2015
7/1/2015
8/1/2015
9/1/2015
10/1/2015
11/1/2015
12/1/2015
There has not been a very sharp or major drop in the Share Price of the company. Its prices have been
pretty consistent because of the demand. We know Voltas is one powerful company when it comes to
specializing in air conditioning and cooling technology. Whenever there has been a slight drop, the
company has come up with new products or innovations in their existing products and picked up their
pace in the growth stage that results in the increase of the share price.

Q.2. Major Initiatives to increase revenue

Voltas has made many initiatives and spent sufficient amount for the development of the community,
people and education. However, with respect to initiatives that increase their revenue, they have restricted
themselves with very few initiatives that as listed as follows: -
1.Voltas has made various initiatives on Commercial Refrigeration products and has generated numerous
positive results with the addition of new customers as well as fresh business from existing customers. The
advantage of using commercial refrigeration is that it has longer life expectancy which is around 10years.
It also reduces energy by the use of commercial refrigeration. For example- If the fridge has a problem,
such as a broken part preventing it from cooling efficiently, then it will use even more energy — which will
drive up your bills significantly. By scheduling regular commercial refrigeration maintenance, you can be
sure that the system is working efficiently and isn’t compromised by a problem that’s forcing it to work
too hard.
2. The focus of IOBG has been on the effective execution of on-going projects together with settlement
and financial closure of older projects. (2017-18)
3. They has been a constantly improvement in margins and savings in costs by introduction of timely
business efficiency improvement programs.
List of New Products
1) Convertible Freezer, Freezer on Wheels and Curved Glass Freezer (2018-19)
2) Newer models of Water Dispensers and Water Coolers. (2018-19)
3) Combo coolers (chest freezer cum cooler) (2016-17)

Q.3. Major strategies of the management for sustainable business processes during last five years.
1. Voltas has actively contributed in various forums, for instance “INDIA-US task force for ODP and
GWP substances” organized by MoEF for HCFC phase out and understanding next generation
environment friendly refrigerants. ODP stands for Ozone depletion potential and GWP stands for
global warming potential. Being a part of these projects Voltas is ensuring that it does it part
towards the sustainable development motto of the world.
2. It has also taken part in countless initiatives of BIS for updating and formulating standards related
to Refrigeration and Air Conditioning.
3. Voltas is working with RAMA for providing inputs to BEE in developing Energy Conservation
Building. The company’s unitary cooling products (UCP) segment, which represents ACs, staged
the best performance in nine years. Revenue growth of 47% year-on-year was way beyond analysts’
expectations of 15-20% for the quarter. What worked in its favor, like it did for other AC makers,
is the heat wave and the subsequent delayed monsoon. In spite of stiff competition, Voltas’ edge
has been its strong presence in room ACs and battery of new products/variants to combat
competition. Room AC sales grew by 36% year-on-year, where it maintained its leadership for the
eighth consecutive year.
4. Voltas ’organizational goals that is their mission also states the importance of minimizing wasteful
energy in their branded products. Voltas’ also strongly believe in making alliance with global
technological partners who also follow a green path.
Q.4. Comparative analysis of the following financial performance
1. Return on assets is a profitability ratio that provides how much profit a company is able to generate from
its assets. ROA is pretty consistent over the years.
2. Dividend per share (DPS) is the sum of declared dividends issued by a company for every
ordinary share outstanding. Dividend per share has been increasing over the years maybe because of the
increase in demand because of the products.
3. Net profit represents the number of sales dollars remaining after all operating expenses,
interest, taxes and preferred stock dividends (but not common stock dividends) have been deducted from a
company's total revenue. Net Profit has been increasing over the last five years.
4. Return on Equity has been decreasing over the last five years.
5. The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations or
those due within one year. The quick ratio is an indicator of a company’s short-term liquidity position and
measures a company’s ability to meet its short-term obligations with its most liquid assets.
Both current and liquidity ratio has first decreased and then increased.
6. The dividend payout ratio is the ratio of the total amount of dividends paid out to shareholders relative
to the net income of the company. DPR has increased over the past five years.
7.EBIT is a measure of a firm's profit that includes all incomes and expenses (operating and non-operating)
except interest expenses and income tax expenses. EBIT for Voltas has been consistent till 2017 and then
increased.
8. Earnings per share is a company's profit divided by the number of common stock shares it has
outstanding. There has been a drop in EPS over the last two years.
9. The interest coverage ratio is a debt ratio and profitability ratio used to determine how easily a company
can pay interest on its outstanding debt. There has been a drop in the ICR
10. P/E ratio is the ratio for valuing a company that measures its current share price relative to its per-share
earnings (EPS). The P/E for the company has been increasing which could imply that the company has been
making profits.
11. Debt-to-equity (D/E) ratio is calculated by dividing a company’s total liabilities by its shareholder
equity. There has been a drop in the debt equity ratio.
12. Net sales has been increasing over the past five years.
Year Dividend /
Share(Rs.) Dividend / Share(Rs.)
4.5
4
3.5
3
Mar-19 4
2.5
Mar-18 4
2
Mar-17 3.5
1.5
Mar-16 2.6
1
Mar-15 2.25
0.5
0
Jan-15 Jan-16 Jan-17 Jan-18 Jan-19

Year Net
Profit/Share Net Profit/Share (Rs.)
(Rs.) 16
14
Mar- 14.04
19 12
Mar- 15.15 10
18 8
Mar- 14.7 6
17
4
Mar- 10.06
16 2
Mar- 9.95 0
15 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19

Year Return on
Networth Return on Networth / Equity (%)
/ Equity 20
(%) 18
Mar-19 12.4 16
14
Mar-18 14.26 12
Mar-17 16.28 10
8
Mar-16 16.01 6
4
Mar-15 17.89 2
0
Jan-15 Jan-16 Jan-17 Jan-18 Jan-19
Year Current
Ratio (X) Current Ratio (X)
1.8
1.6
1.4
1.2
Mar-19 1.63 1

1.3 0.8
Mar-18
0.6
Mar-17 1.21 0.4

1.35 0.2
Mar-16
0
Mar-15 1.34 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19

Year Quick
Ratio (X)

Quick Ratio (X)


Mar-19 1.3
1.4

Mar-18 1.05 1.2


1
Mar-17 0.91 0.8
0.6
Mar-16 1.08 0.4
0.2
Mar-15 1.04 0
Jan-15 Jan-16 Jan-17 Jan-18 Jan-19
Year Dividend
Payout
Ratio Dividend Payout Ratio (NP) (%)
(NP) (%) 30
25
20
Mar-19 28.49
15
Mar-18 23.1
10
Mar-17 17.69
5
Mar-16 25.84
0
Mar-15 22.61 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19

Year EV/EBITDA
(X) EV/EBITDA (X)
35

30
Mar- 32 25
19
Mar- 28.53 20
18 15
Mar- 19.7
17 10
Mar- 19.77 5
16
0
Mar- 20.14
Jan-15 Jan-16 Jan-17 Jan-18 Jan-19
15

Year Earnings
per share Earnings per share
20
18
16
14
Mar-19 15.5 12
10
Mar-18 17.5 8
6
Mar-17 15.7 4
Mar-16 11.9 2
0
Mar-15 11.6 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19
Year Interest
Coverage Interest Coverage Ratios (%)
Ratios (%) 80
70
60
Mar-19 23.47 50
Mar-18 68.16 40
30
Mar-17 47.04
20
Mar-16 34.39 10
Mar-15 21.1 0
Jan-15 Jan-16 Jan-17 Jan-18 Jan-19

Year P/E ratio


Avg P/E ratio
Mar-19 36.6 40

Mar-18 30.8 30

Mar-17 22 20

Mar-16 24 10

Mar-15 19.4 0
Jan-15 Jan-16 Jan-17 Jan-18 Jan-19

Year Debt
Equity Ratio Debt Equity Ratio
0.07

Mar-19 0.03 0.06

Mar-18 0.01 0.05

0.02 0.04
Mar-17
0.03
Mar-16 0.06
0.02
Mar-15 0.03
0.01
0
Jan-15 Jan-16 Jan-17 Jan-18 Jan-19
Year Net Sales
Turnover Net Sales Turnover
8000
7000
Mar'19 6693.19 6000
Mar'18 5808.77 5000
Mar'17 5410.36 4000
3000
Mar'16 5148.77
2000
Mar'15 5168.95 1000
0
Mar'19 Mar'18 Mar'17 Mar'16 Mar'15

Q.5. Major competitors in the Industry and comparison.


The major Competitors of Voltas are Blue Star, Johnson Control, Amber enterprise, ICE Make Refrig,
LEEL. For the year 2018-19, the following comparison has been made on the given parameters for a better
performance analysis: -

Name Closing Price Market Cap. Sales Net Profit Total Assets
(Rs. cr.) Turnover

Voltas 691.70 22,887.30 6,693.19 464.47 3,856.79


Blue Star 832.50 8,018.13 4,783.70 121.79 1,325.42
Johnson Control 2,039.00 5,544.22 2,241.30 85.94 802.61

Amber Enterpris 937.50 2,948.11 2,188.40 92.52 1,131.53

ICE Make Refrig 55.10 86.35 129.18 7.83 52.47

LEEL 3.30 13.31 1,950.80 522.23 1,779.34

From the given table, we can see that Voltas is doing pretty great in comparison to its competitors. Though
it has a lower closing price in comparison to its competitors, the market capitalization which is the current
market price multiplied by the shares outstanding is much higher than the others.
The Sales turnover for Voltas is also higher which indicates that the product is doing good in the market
and has a consistent demand which in turn is generating such high revenue.
LEEL did make a lead in the section for Net Profit and that’s the only section Voltas is lagging behind.
Q.6. Depreciation followed by Voltas and its percentage
Year Depreciation % Depreciation Method Change
2014-2015 22.45 Straight Line Method -
2015-2016 19.10 Straight Line Method -
2016-2017 18.12 Straight Line Method -
2017-2018 19.23 Straight Line Method -
2018-2019 19.71 Straight Line Method -

Straight Line Method has been followed for both property, plant and equipment and also on the tangible
fixed assets of the Group’s foreign subsidiaries as per the estimated useful life of such assets as follows: -
- Buildings - 6 to 10 years
- Plant and Equipment - 3 to 10 years
- Office and EDP Equipment - 3 to 6 years
- Furniture and fixtures - 3 to 7 years
- Vehicles - 3 to 5 years
- Porta Cabins - 1 to 10 years
Reference- Annual Report, CSR section.

Q.7. CSR amount spent and the areas


Voltas has started with their CSR activities from the year 2015. The CSR Policy sets out the Company’s
commitment and approach towards Corporate Social Responsibility of improving the quality of life of the
communities it serves. Through its philosophy of Engage, Equip and Empower, which is interwoven in all
the three thrust areas, i.e. Sustainable Livelihood, Community Development and Issues of National
Importance, the Company endeavors to enhance employability of youth and women, work on the priority
development concerns of the community and address issues of National Importance like Natural calamities,
Cleaner India (Sanitation) and Affirmative Action.
Voltas follows the CSR in accordance to the following acts: -
[Pursuant to Section 134(3)(o) of the Companies Act, 2013 and
Rule 9 of the Companies (Corporate Social Responsibility) Rules, 2014]
Voltas has focused their attention for CSR mainly into the following areas ever year: -
Areas of CSR activities are:
(i) Vocational Skill Development Programs
(ii) Education
(iii) Health
(iv) Disaster Relief
Year Amount Spend Unspent Amount
2014-15 - -
2015-16 6.97 crores 0.10 crore
2016-17 8.37 crores Nil
2017-18 9.13 crores Nil
2018-19 10.00 crores Nil

Reference – Annual Reports


Q.8. Community Development, Environment and Employees
To make a positive change in the community and enhance the quality of human life, the Company has made
constant educational involvements that have their effort and focus on mainly five critical aspects that
include Quality Education; Teacher’s Training and Capacity Building; English Proficiency through digital
medium; Inculcating Reading habits in primary school children; and Career Guidance and Counselling for
Youth. More than 10,100 children were directly affected by this quality education intervention initiative by
Voltas.
The scholastic schemes that aim at sustainable outcomes, emphasizes on stakeholder participation. Under
Teachers Training, in partnership with Muktangan, Voltas reached out to over 284 teachers from
government-run schools. The community project in Dadra is an integrated rural development project with
focus on water, health and sanitation. The project is also an affirmative action initiative for tribal
communities living in and around the Company’s Dadra plant. Voltas has successfully constructed 200
toilets with active participation from villagers and the Gram Panchayat. Under the water for irrigation
project, the Company has formed water user groups, conducted agricultural training, and built 10 Bore-
wells and 10 Poly-Ponds with farmers’ participation drought prone area of Marathwada in Maharashtra.
The initiative which aimed at Participatory Ground Water Management, undertook area treatment plan in
five villages of Osmanabad and Latur districts. Voltas also built capacities of over 250 farmers from the
two districts to understand hydro-geological state of the villages, measures for sustainable and safe drinking
water, and appropriate agricultural activities and practices.
Under Affirmative Action, the Company continues to extend nutritional and educational support to Kathkari
children from a school near Panvel. Additionally, Voltas also introduced two more initiatives: Stitching and
Tailoring skill training program for tribal women and Nursing course. The Company created an Income
generation and Empowerment Centre called Sabala which helps the trained tribal women with linkages to
generate tailoring business on a sustainable basis. Out of the CSR Budget of 2018-19, over 24% was spent
towards Affirmative Action. In 2018-19, the exclusive skill training program in Electrical and Plumbing
for Scheduled Caste / Scheduled Tribe youth in Raigad, Thane and Palghar District were further
strengthened with better outreach strategies. Value additions in the program included industry experts
coming on board for guidance and better placement opportunities. At present, 254 youth have been
trained,184 youth are placed with appropriate organizations, and 56 youth who are currently undergoing
training, will be up for placement in 2019-20.
Skilling youth for Enhanced Employability
We believe that in order to achieve social development, it is crucial to be economically self-sufficient.
Hence under sustainable livelihood, emphasis is laid on enhancing employability of youth between the ages
18 to 25, through skill development programmes, on job training and suitable placement. Our Skill Training
Initiative is spread across 13 states, making it one of our flagship programs.

The Training Initiatives are in partnership with some of the most reputed organizations like Tata Strive,
GMRV, ICICI Foundation, Bosco Boyz and JCTS and ensures identification and mobilization of deserving
candidates from the lower socio-economic strata, provision of well-equipped training infrastructure, roll
out of quality training, assessments, certification and job placement. Between 2008 and 2018 we have
trained over 9000 youth. Skill Training Areas - Technical domain knowledge, Life Skill Education
Certification, On the Job training
Soft Skills - Safety Awareness, Focus on customer care, Ethics & Values
The interventions taken up under Community Development, have emerged out of a rigorous community
needs assessment exercise. The community development initiative deals with the issues of Water &
Sanitation, Health, Education and Employability Enhancement across 4 locations of Voltas.

These initiatives have been designed to address the issues in the neighborhood communities of Voltas
manufacturing plants and HQ, in the radius of 15 kms. Voltas manages community development projects
in the vicinity of four of our plant location. These are at Dadra, Mumbai, Thane & Pantnagar. Project areas
include improved agriculture, the institution of quality libraries, technical education, and non-technical
skills training for women.
Reference – Annual reports
Q.9. N.A.
Q.10. Securities Issued

Year Securities Issued


2018-19 Authorized
Issued, Subscribed and Paid up
Term loans from Banks
Working Capital loans from Banks
2017-18 Authorized- Equity and Preference
Issued, Subscribed and Paid up
Term loans from Banks
Working Capital loans from Banks

2016-17 Authorized
Issued, Subscribed and Paid up
Term loans from Banks
Working Capital loans from Banks

2015-16 Authorized Shares


Issued, Subscribed and Paid up
Term Loans From Banks
Repayable on Demand From Banks
2014-15 Authorized
Issued, Subscribed and Paid up
Out of the above, the following have been given credit rating: -

Instrument Previous Rated Amount Current Rated Amount Rating Action


(Rs. crore) (Rs. crore)
Long-term / Short term [ICRA]AA+ (Stable);
Fund based / Non-fund 3,500.00 3,500.00 upgraded from
based Facilities (March [ICRA]AA (Positive) /
29, 2019) [ICRA]A1+; reaffirmed
Term Loans 30.00 0.00 -
Fund-based limits 120.00 0.00 -
Non-fund based limits 1,850.00 0.00 -
Fund-based / Non-fund 0.00 3,500.00 [ICRA]AA/ [ICRA]A1+;
based Bank Facilities Reaffirmed ; outlook
revised to Positive from
Stable

Name of credit rating agencies – ICRA


Reference- https://www.icra.in/Rationale/ShowRationaleReport/?Id=66600

https://www.icra.in/Rationale/ShowRationaleReport/?Id=79100

Q.11. Comparative analysis of the debt position of the company

Year FY19 FY18 FY17 FY16 FY15


Debt 0.448963 0.461308 0.485283 0.392627 0.387168
Ratio
Debt 0.03 0.01 0.02 0.05 0.02
Equity
Ratio

Debt ratio is a solvency ratio that measures a firm’s total liabilities as a percentage of its total assets. In a
sense, the debt ratio shows a company’s ability to pay off its liabilities with its assets. In other words, this
shows how many assets the company must sell in order to pay off all of its liabilities.
A lower debt ratio usually implies a more stable business with the potential of longevity because a company
with lower ratio also has lower overall debt. Each industry has its own benchmarks for debt, but .5 is
reasonable ratio.
A debt ratio of .5 is often considered to be less risky. This means that the company has twice as many assets
as liabilities. Or said a different way, this company’s liabilities are only 50 percent of its total assets.
Essentially, only its creditors own half of the company’s assets and the shareholders own the remainder of
the assets.
The D/E ratio is an important metric used in corporate finance. It is a measure of the degree to which a
company is financing its operations through debt versus wholly-owned funds. More specifically, it reflects
the ability of shareholder equity to cover all outstanding debts in the event of a business downturn.
Reference- https://www.myaccountingcourse.com/financial-ratios/debt-ratio
- https://www.investopedia.com/terms/d/debtequityratio.asp
Q.12. Voltas has issued IFRS 2 (‘Share-based payment,’) in India but it is not yet effective as of now.
Moreover, Voltas’ foreign subsidiaries follow IFRS that were effective from the given dates of adoption-
IFRS 15: Revenue from Contracts with Customers
(1st January, 2018) l IFRS 9: Financial Instruments
(1st January, 2018) l IFRS 16: Leases (1st January, 2019)
Reference – Annual Reports
Q.13. Altman’s Z score model
Year FY19 FY18 FY17 FY16 FY15
Working 964 439 433.73 360.92 508.39
Capital

EBIT 628.16 694.24 666.69 443.47 431.59


Shares 330.88 330.88 330.88 330.88 330.88
outstanding
Total 3,377.09 3,372.00 3,144.42 2,198.23 1,892.57
Liabilities
Total Assets 7,521.98 7,309.65 6,479.56 5,598.77 4,888.24
Sales 7,124.00 6,428.00 6,095.00 5,747.00 5,205.00
Retained 1,931.43 1,662.98 1,292.05 818.89 605.91
earnings
MP 693.45 542.4 386.7 270.15 251.4
MVE 229,449 179,469 127,951 89,387 83,183

Year FY19 FY18 FY17 FY16 FY15


A 0.128158 0.060058 0.066938 0.064464 0.104003

B 0.256771 0.227505 0.199404 0.146262 0.123953


C 0.08351 0.094976 0.102891 0.079208 0.088291

D 30.50377 24.55238 19.74691 15.96551 17.01701


E 0.947091 0.879385 0.94065 1.026475 1.0648
Z 20.0382 16.31481 13.48783 11.1493 11.86471
Z score is above 3 and very high which implies that the company, Voltas is very unlikely to get bankruptcy.
Reference – Annual reports
Q.14. The following are the legal cases against Voltas: -

Voltas Ltd. Vs. Rolta India Ltd.

[Civil Appeal No. 2073 of 2014 arising out of SLP (Civil) No. 30015 of 2013]

[Civil Appeal No. 2076 of 2014 arising out of SLP (Civil) No. 31195 of 2013]

Voltas have been in the light regarding a major case that wasn’t related to a financial fraud
1. Haier advertisement case: Delhi High Court interim order favors Voltas
Reference - https://indiankanoon.org/doc/55791179/

- https://m.economictimes.com/industry/cons-products/durables/haier-
advertisement-case-delhi-high-court-interim-order-favours-
voltas/articleshow/64420734.cms

Q.15. Information of the Employees

Year 2018-19 2017-18 2016-17 2015-16 2014-15


Total 8261 8118 8429 8741
Permanent 5,458 4,769 5,256 4547 6901
Contract 2,560 2,154 2,700 2455 4519
Women 172 164 169 - -
Disabilities 2 2 2 2 2

Q.16. N.A.