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Informist, Thursday, May 8, 2025

By Arya S. Biju

MUMBAI – Voltas Ltd. does not plan any price hikes immediately. The company will evaluate the demand environment, trend of commodity prices, currency movement and will accordingly decide on price hikes, Pradeep Bakshi, managing director and chief executive officer of the home appliances company, said in a post-earnings analyst call.

Going forward, the company remains optimistic about business across all product categories, with the expectation of a longer summer. It expects strong and positive consumer sentiment to continue to support volume growth despite a strong comparable quarter. The company's profitability is expected to be driven by optimisation of manufacturing facilities and cost efficiencies in upcoming quarters.

On the ramp-up of capacity, the company said commercial production from its facility in Chennai, Tamil Nadu, is progressing as planned. During the March quarter, the factory helped cater to the increased demand and balance the supply chain, particularly in the southern and western markets of India, the management said. "Our overall growth was owing to combination of operations at our factory in Pantnagar and the steady ramp up of our newly established Chennai factory," Bakshi said.

During the March quarter and 2024-25 (Apr-Mar), the company saw steady project execution across verticals and geographies. However, in the domestic business, the company has faced challenges in collections from certain projects, which it expects to recover in the coming quarters. The company had made some provisions for international projects, as some payments got delayed, the management said. However, it did not specify when the provisions were made. Voltas expects to receive these payments in the coming quarters.

The company said it faced challenges in secondary and tertiary sales in the last 30–40 days owing to rains and storms in some parts of the country. However, it does not expect this to impact the performance of these segments in the June quarter. During the March quarter, the company saw strong demand for cooling products. Revenue from the company's unitary cooling products segment was INR 34.58 billion during the quarter, up from 29.55 billion in the year-ago period. The segment's margin for the quarter was supported by a better product mix, despite challenges due to increase in commodity prices and volatility in foreign exchange rates. Within this segment, the air-cooler segment grew over 70% in FY25, driven by the strategic initiatives taken by the company.

During the financial year ended March, the company saw a volume growth of 36-37% and revenue growth of around 30%, the management said. Voltas announced its March quarter earnings Wednesday. It reported a consolidated INR 2.41 billion for the quarter, on revenues of INR 47.68 billion. On Thursday, shares of the company closed 1.7% lower at INR 1,223.10 on the National Stock Exchange.  End

Edited by Ashish Shirke

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