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Informist, Monday, Aug 12, 2024

--Voltas Apr-Jun consol net profit 3.34 bln rupees 
--Analysts saw Voltas Apr-Jun consol net profit 2.46 bln rupees 
--Voltas Apr-Jun consol net profit 3.34 bln rupees vs 1.29 bln 
--Voltas Apr-Jun consol revenue 49.21 bln rupees vs 33.60 bln 

By Noel John

MUMBAI – Beating analysts' estimates, Voltas Ltd reported a strong rise in its June quarter topline on the back of robust air conditioner sales and a healthy order book for its products and service businesses. The company also achieved the milestone of 1 mln air conditioner sales in the reporting quarter. 

The home appliances company reported a consolidated revenue of 49.21 bln rupees, up 46.5% on year and 17.1% sequentially, in Apr-Jun. This was higher than the expectation of 44.79 bln rupees, as per the average of estimates from nine brokerages. The company's unitary cooling products' volume grew 67% on year, outperforming the market. "Voltas continues to be a market leader both in split and window air-conditioners with an exit market share of 21.2% as at June," the company said in its press release. 

The Tata group-owned company's consolidated net profit rose a whopping 159% on year to 3.34 bln rupees against the expectation of 2.46 bln rupees. Sequentially, the bottomline rose over 187%. This is the highest ever quarterly profit reported by the company, as per the press release. 

Total expenditure, including finance costs, rose 41.4% on year to 45.20 bln rupees during the reporting quarter. All expenses rose on year, except finance costs, which fell 3.6% on year to 97.5 mln rupees. Consumption of materials, cost of jobs and services, which is the company's biggest expense, rose nearly 12% on year to 17.22 bln rupees during the quarter, followed by costs related to the purchase of stock-in-trade, which jumped nearly 56% on year to 16.52 bln rupees.

SEGMENT SHOW

Revenue from the company's unitary cooling products business, which forms over 77% of its total revenue, rose over 51% on year to 38.02 bln rupees amid buoyant sales of air conditioners in the quarter due to heat waves across the country. The segment's profit before tax, finance costs, and other expenses rose 58% on year to 3.27 bln rupees in the June quarter.

The electro-mechanical projects and services segment, which comprises both domestic and international project businesses, grew due to a healthy carry forward order book, the company said. "Timely execution, focus on completion certification and other related project management initiatives have resulted in robust bottomline growth," the company said. Its domestic projects continue to support order pad growth, given the increased infrastructure spending in the country, the company added.

The electro-mechanical projects and services segment revenue grew 40% on year to 9.49 bln rupees in the June quarter. The segment reported a profit before tax of 674.9 mln rupees against a loss in the year-ago and quarter-ago periods. For its international projects business, projects in the United Arab Emirates and Saudi Arabia continued to deliver good performance, as per the company. "Strong project execution, timely assessment of cost and profitability have ensured a better bottom-line performance after facing challenges for the last few quarters," the company added. 

Revenue from the engineering product and services segment rose over 13% to 1.61 bln rupees. However, its profit before tax fell slightly compared to the year-ago and quarter-ago periods. 

At 1129 IST, shares of Voltas traded 8% higher at 1,543.40 rupees on the National Stock Exchange.  End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Namrata Rao

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