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Informist, Thursday, Jan. 30, 2025

By Aman Aryan and Narayana Krishna 

MUMBAI – Voltas Ltd. has a total carry forward order book of INR 68.18 billion for the electro-mechanical projects and services segment as of Dec. 31, of which orders worth INR 19.56 billion are from international clients, the company's management said in a post-earnings analysts' conference call. During the nine months ended December, the home appliances company received orders worth INR 14.38 billion from domestic clients for its electro-mechanical projects and services segment, taking the domestic order book to INR 48.62 billion, the management said. 

While the segment didn't get any international orders in the nine months to December, a sturdy execution of existing orders boosted the company's turnover for the first nine months of the current financial year. Post-market hours Wednesday, Voltas reported consolidated revenue of INR 106.45 billion for Apr-Dec, up from INR 82.78 billion a year ago. 

For the December quarter, the company's consolidated revenue was INR 31.05 billion, up 18% on year. Voltas remains the market leader in both split and window air-conditioners, recording a market share of 20.5% as of Dec. 31, the management said. Addressing analysts, the management said demand during the quarter was primarily driven by the festive season and it anticipates strong demand for all product categories in the upcoming summer season.

Voltas has earmarked INR 4 billion-INR 4.5 billion capital for a compressor manufacturing unit and for ramping up the overall production capacity. The company has already spent over INR 4 billion on setting up its unit in Chennai, which has already commenced operations. Of the total earmarked capital, INR 2.5 billion will be spent on compressor manufacturing, the management said. However, the production of compressors will take some time as it is looking for a technological partnership, the company said. 

The company's annual depreciation may rise to INR 700 million-INR 750 million after all the capital expenditure is capitalised, the company said. Voltas' depreciation expense for the December quarter was INR 178.7 million and for the nine months ended December it was INR 477.3 million. 

Its product portfolio, especially for cold room, is garnering attention with a healthy pipeline of orders, the management said, and added that ramp-up of production in its new factory remained low due to a slowdown during the year. Voltas retained its earlier guidance for high single-digit margin for the current financial year.

Strategic initiatives and launches planned for summer will further improve the performance in the market and will support strengthening market share in a more sustainable and profitable manner, the management said, and added that optimisation of its manufacturing units and cost-cutting measures will be a key driver of profitability. The company also plans to invest more on modern trade and regional retail, the management said.  

Voltbek Home Appliances Pvt. Ltd., the company's joint venture with Turkish home appliances company Arcelik, reported a volume growth of 59% during the December quarter. For washing machines and refrigerators, the company's market share improved to 8.3% and 5.1%, respectively, as of Nov. 30. On Thursday, shares of Voltas closed at INR 1,269.30 on the National Stock Exchange, down 13.9%.  End

Edited by Deepshikha Bhardwaj

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