Voltas Disappoints Q4 Profit Expectations; Stock Falls Over 7%

Air conditioner and fridge manufacturer, Voltas, felt a scorching heat in the Wednesday trading session as shares fell around 7 per cent on below expected profit.

Voltas stock traded at Rs 1,323 with 4.7 per cent dip in the afternoon session on the National Stock Exchange (NSE). 

Voltas profit dipped to 19 per cent in the fourth quarter and stood at Rs 116 crore against the analysts’ expectation of Rs 213 crore.

However, its revenue from operations increased to Rs 42.03 billion with a 42 per cent jump against the analysts’ expectation of Rs 38.13 billion, while total expenses surged nearly 47 per cent year-on-year (YoY). 

Voltas unitary cooling products segment, which consists of air conditioners, air coolers and commercial refrigeration reported 44 per cent increase in revenue on YoY basis.

The firm blames huge deals and discounts which hurth the revenue in order to increase sales and allure customers. Additionally, delayed stocking of air conditioners due to an extended winter in parts of the country also pinched the earnings. 

Furthermore, while the prices of raw materials such as copper and aluminium have declined from their post-covid peaks, they still remain higher compared to pre-pandemic levels. 

In terms of stock performance, the firm’s milestone of two million air conditioners sales and the Indian Meteorological Department (IMD) warnings of extreme heats led to a sharp rise in stock prices.

Voltas stock has delivered whopping 34 per cent year-to-date (YTD) returns outperforming the benchmark indices, Nifty and Sensex with huge margins.