Voltas share price rises 9% post Q1 results as net profit rises 160%, beating analyst expectations

Stock Market Today: Voltas share price rose more than 9% in morning trades on Monday post Q1 results that beat expectations. The reported net profit by Voltas surged 160% to ₹335 Crore. The Consolidated Total Income for the quarter ended 30th June, 2024 was higher by 46% at Rs.5,001 crores as compared to Rs.3,430 crores in the corresponding quarter last year.

The profit before tax was higher by 123% at Rs.452 crores, its highest ever quarterly profit highlighted the company that also helped support investors confidence on Voltas share price.

Notably the net profit reported by Voltas at ₹335 crore was way ahead of analysts estimates. Analysts at Motilal Oswal Financial Services had pegged Voltas net profit to come at ₹190 crore led by Unitary Cooling Products segment, which MOFSL expected to see a growth of 27.5%. Centrum Broking also expected Voltas to report ₹237 crore as net profit.

As strong summer season sales helped drive growth, Voltas Unitary Cooling Products segment revenue at ₹3802 crore grew 51% year-on-year, beating all expectation and boosting Voltas share price.

Voltas said that the Unitary Cooling Products business continued to outperform the market and maintained its growth momentum. Overall volume grew by 67%. Voltas continues to be a market leader both in Split and Window Air-conditioners with an Exit Market Share of 21.2% as at June 2024. The market share of Voltas has seen expansion and at the end of the March 2024 quarter, ytd market share of Voltas stood at 18.7%.

The segments net profit during the quarter grew by 58% to Rs.327 crores as compared to ₹207 crores in the corresponding quarter last year.

Strong Q1 growth as set the pace for Voltas to report strong FY25 performance. The Q1 remains key for volume growth and earnings for cooling product companies. The strong Q1 summer sales growth also means that the channel inventories for Voltas are low and hence sales growth will also continue, said analysts

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