August 12, 2024
New Delhi, India
Q1 Results
Voltas Ltd, a leading air conditioning and engineering services provider, reported a significant two-fold jump in its consolidated net profit to ₹335 crore for the first quarter ended June 30, 2024. This impressive growth was primarily driven by a substantial increase in sales from its room air conditioning (AC) business, marking a strong start to the financial year.
Financial Performance: In Q1 FY25, Voltas achieved a major milestone by selling one million units of ACs, which contributed significantly to the company’s overall performance. The Tata Group company’s total income surpassed the ₹5,000 crore mark for the quarter, reaching ₹5,001.27 crore, a 45.81% increase compared to the same period last year.
Revenue and Expenses: Voltas’ revenue from operations surged by 46.46% to ₹3,359.86 crore, compared to ₹2,513.97 crore in Q1 FY24. The company also witnessed a notable rise in expenses, which increased by 41.44% to ₹4,520.40 crore during the quarter.
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Segment Performance:
- Unitary Cooling Products: The revenue from the “unitary cooling products for comfort and commercial use,” which includes the room AC business, grew by 51.24% to ₹3,802.17 crore. Voltas’ overall volume in the AC segment increased by 67% during the April-June period, maintaining its market leadership in both Split and Window air conditioners with a 21.2% market share as of June 2024.
- Electro-Mechanical Projects and Services: Revenue from this segment, which includes domestic and international projects, rose by 39.77% to ₹949.13 crore. The domestic projects business, with a presence in MEP (Mechanical, Electrical, and Plumbing), Water, Electrical & Solar sectors, showed strong growth due to a healthy order book and timely project execution. International projects, particularly in the UAE and Saudi Arabia, also performed well, contributing to the company’s revenue growth.
- Engineering Products and Services: This segment saw a 13% increase in revenue, reaching ₹160.78 crore in the June quarter.
Market Reaction: Shares of Voltas Ltd responded positively to the strong quarterly performance, with the stock trading at ₹1,549.30 on the BSE on Monday morning, up 8.32% from the previous close.
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