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Informist, Wednesday, Jan. 29, 2025

By Steffy Maria Paul

MUMBAI – Voltas Ltd.'s consolidated net profit for the December quarter missed the Street's view, though the revenue managed to beat estimates. The home appliances company reported a consolidated net profit of INR 1.32 billion during the quarter, falling short of analysts' estimate of INR 1.61 billion. The company had reported a net loss of INR 304.1 million in the year-ago quarter. 

The company reported a consolidated revenue of INR 31.05 billion for the Oct-Dec period, up 18.3% from INR 26.26 billion a year ago. Analysts had expected the company to post a consolidated revenue of INR 30.07 billion for the quarter. Sequentially, the company's net profit fell 1.4% and revenue rose 18.7%. The company's sequential revenue growth in Oct-Dec was the highest revenue in three quarters. 

For the nine months ended December, Voltas' net profit grew over four-fold to INR 6.00 billion, while revenue rose 28.6% on year to INR 106.45 billion.

For the December quarter, the Tata group-owned company reported total expenses of INR 29.41 billion, up 12% on year. The cost of raw materials, jobs, and services was INR 21.99 billion, up 27% on year and 23.5% sequentially. The company's purchase of stock-in-trade related expenses rose around 20% on year to INR 7 billion. The company's other expenses fell 11% on year during the quarter to INR 2.96 billion. 

The company's unitary cooling products segment reported a revenue of INR 17.71 billion, up 20% on year. The segment's volume grew 42% in the first nine months of the current financial year. With an exit market share of 20.5% as of Dec. 31, Voltas remained the market leader in both split and window air-conditioners, the company said in a press release. 

The revenue of its electro-mechanical projects and services segment, which includes both domestic and international projects businesses, rose 21% on year to INR 11.90 billion. The domestic projects business grew 17% during the quarter. The business includes segments such as mechanical, electrical, and plumbing, water, and solar. The domestic business continues to expand its order book, the company said, adding that it maintains a positive outlook on the business. Projects in the United Arab Emirates and Saudia Arabia continue to perform well in the international projects business, the company said.

The engineering products and services segment's revenue contracted 16% on year to INR 1.30 billion. The company's joint venture with Turkish home appliances company Arcelik, Voltbek Home Appliances Pvt. Ltd., reported a volume growth of 56% in Apr-Dec. The joint venture gained market share across the refrigerator and washing machine categories during the quarter, with the washing machine segment gaining over 10% market share.

The company has appointed Mukundan Menon, executive director and head of room air conditioners vertical, as the managing director designate effective Apr. 1. This follows Managing Director and Chief Executive Officer

Pradeep Bakshi seeking reappointment upon the completion of term in August, the company said. Menon will assume charge as managing director effective Sept. 1.  

On Wednesday, shares of Voltas closed at INR 1,474.10 on the National Stock Exchange, up 3.0%. The company detailed its earnings for the December quarter post market hours.  End

Edited by Saji George Titus

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