Voltas’ shares slip ~9% on lackluster performance in Q4

8 May 2024 , 10:54 AM

Voltas’ shares plummeted 9% on Wednesday to a day low of ₹1,262 on the BSE after the home appliances manufacturer reported a 340 basis point sequential reduction in its EBITDA margin.

Voltas reported a 22.75% year-on-year (YoY) fall in consolidated net profit to ₹110.64 Crore in the March quarter, while revenue increased by 42% YoY to ₹4,202.88 Crore. Voltas reported a consolidated net profit of ₹143.23 Crore for the same time in the previous fiscal year, according to a regulatory filing.

It further stated that the consolidated income from operations for the quarter under review was ₹4,202.88 Crore, up from ₹2,956.8 Crore the previous year.

Total expenses in the fourth quarter were ₹4,044.90 Crore, up from ₹2,761.45 Crore in the same period last year.

The company’s Unitary Cooling Products (UCP) division continued to outperform the market while maintaining its growth momentum. While overall volumes increased by 27%, YoY growth for air conditioners was even greater at 35%. Voltas is the market leader in both split and window air conditioners, with a year-to-date market share of 18.7% as of March 2024.

The engineering goods and services segment generated ₹156 Crore in revenue, up from ₹142 Crore in the previous year.

Similarly, the electro-mechanical projects and services category, which includes both domestic and international project businesses, increased by 38% year on year due to a strong carry forward order book position, Voltas stated.

At around 10.47 AM, Voltas was trading 6.17% lower at ₹1,303.55 per piece, against the previous close of ₹1,389.20 on NSE. The counter touched an intraday high and low of ₹1,329.45 and ₹1,262, respectively.

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