Voltas Shares drops 9% after Q4 profit tumbles 22%
Upstox
2 min read • Updated: May 8, 2024, 11:52 AM
Summary
Voltas shares witnessed a steep decline of over 9% on Wednesday after the company's Q4 earnings report revealed a significant drop in profits. The company's consolidated net profit for the March quarter ending March 31, 2024, fell by 22.75% to ₹110.64 crore compared to ₹143.23 crore in the same period last year. This decline has been attributed to a rise in expenses, despite a growth in revenue from operations during the quarter.
Shares of air conditioning and engineering services provider Voltas Ltd on Wednesday tanked over 9% after the company reported a 22.75% decline in consolidated net profit in the fourth quarter ended March 31, 2024. At the NSE, the stock dropped 9.15% to ₹1,262 apiece.
Voltas Ltd on Tuesday reported a 22.75% decline in consolidated net profit to ₹110.64 crore in the March quarter, impacted by higher expenses. The company had posted a consolidated net profit of ₹143.23 crore in the same period of the previous fiscal, Voltas said in a regulatory filing.
Consolidated revenue from operations during the quarter under review stood at ₹4,202.88 crore, as against ₹2,956.8 crore in the year-ago period, it added. Total expenses in the fourth quarter were higher at ₹4,044.90 crore, compared to ₹2,761.45 crore in the corresponding period a year ago.
Voltas reported strong financial results across several business segments in their latest report. The Unitary Cooling Products segment, which manufactures air conditioners, saw a revenue increase of 44% year-over-year to ₹2,955 crore. This growth is attributed to the company's improved product mix strategy.
Other segments also performed well. The Engineering Products and Services division reported a revenue increase, while the Electro-Mechanical Projects and Services segment, encompassing both domestic and international projects, saw a 38% year-over-year jump in revenue due to a healthy backlog of orders. Notably, Voltas achieved a significant sales milestone in 2023-24, selling 20 lakh air conditioners. The company's board has even proposed a dividend of ₹5 per share for the fiscal year 2023-24, subject to shareholder approval.
At 11:43 AM, shares of Voltas traded 5.34% lower at ₹1,314.95 apiece on NSE on 8 May, 2024.
With inputs from PTI.