Voltas Q1 Results Highlights: Profit Doubles to ₹335 Crore Driven by Strong Sales

On Monday, Voltas Ltd announced a more than twofold rise in consolidated net profit, amounting to ₹335 crore. Revenue from operations soared by 46.46% in the June quarter, while the company's AC segment experienced a 67% increase in volume during the April-June period.

Voltas Q1 Results Highlights

Voltas Ltd, a leading air conditioning manufacturer and engineering services provider, reported a significant increase in consolidated net profit, reaching ₹335 crore for the first quarter ending June 30, 2024. This represents more than a twofold rise, largely driven by substantial volume growth in its room air conditioner (AC) business.

Additionally, the Tata Group company marked a "milestone" by selling one million AC units in Q1 FY25, with its total income surpassing ₹5,000 crore during the June quarter.

On Monday morning, Voltas shares were trading at ₹1,549.30 on the BSE, reflecting an 8.32% increase from the previous close.

In comparison, the company had recorded a consolidated net profit of ₹129.42 crore in the same quarter of the previous year, according to a regulatory filing.

Voltas' revenue from operations surged by 46.46% in the June quarter, climbing from ₹3,359.86 crore in the corresponding quarter last year.

The company's total expenses rose by 41.44% to ₹4,520.40 crore in the June quarter of FY25, while its total income grew by 45.81% to ₹5,001.27 crore.

During the first quarter of this fiscal year, Voltas' revenue from "unitary cooling products for comfort and commercial use," which includes its room AC business, increased by 51.24% to ₹3,802.17 crore, compared to ₹2,513.97 crore in the same period the previous year.

Overall, the company's AC segment saw a 67% growth in volume during the April-June period. "The Unitary Cooling Products business continued to outperform the market and maintained its growth momentum," Voltas stated, noting that it remains the market leader in both Split and Window air conditioners with an Exit Market Share of 21.2% as of June 2024.

Revenue from "electro-mechanical projects and services," which encompasses domestic and international project businesses, rose by 39.77% in the June quarter to ₹949.13 crore.

Similarly, the revenue from "engineering products and services" increased by 13%, reaching ₹160.78 crore in the June quarter.

Voltas Management Commentary

"The Domestic Projects business with a presence in MEP (Mechanical, Electrical and Plumbing), Water, Electrical & Solar has grown due to a healthy carry forward order book. Timely execution, focus on completion certification and other related project management initiatives have resulted in a robust bottom-line growth," it said.

For International Projects Business, projects in UAE and Saudi continue to deliver good performance and drive revenue growth for the business. "Strong project execution, timely assessment of cost and profitability have ensured a better bottom-line performance after facing challenges for the last few quarters," it said.

About Voltas Limited 

Established in 1954, Voltas Limited is a subsidiary of the Indian multinational conglomerate, the TATA Group. The company stands as India's largest air conditioning firm, with a prominent presence in delivering top-tier engineering solutions across various sectors, including Air Conditioning and Cooling Products (Unitary Products), Engineering Projects, and Engineering Products & Services.