Voltas shares rally up to 13% to hit a 52-week high after record sales in FY24

The shares of leading air conditioner manufacturer Voltas Ltd rallied up to 13% to hit year-high levels on Monday after the company reported record sales of 2 million units in the last financial year.

According to a business update posted by the Tata Group company, Voltas achieved the milestone of 2 million units sales in the country last fiscal. This was the highest sales of ACs by any brand in a fiscal in India.

Voltas reported a strong 35% growth in sales in FY24 over the previous fiscal.

Consistent demand for cooling products, its strong offline and online distribution network, new product launches and strongest brand equity helped Voltas scale the 2 million units sales milestone, the company said in a release.

“We believe that our wide presence, focus on the emerging retail channels, excellent distribution network, strongest brand equity and attractive consumer offers, have helped us to achieve this significant milestone,” Voltas Ltd CEO and MD Pradeep Bakshi said.

The company said that the Indian residential AC market was estimated to be around 10 million units in the last financial year and is likely to grow to 11.5 million units this year.

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The India Meteorological Department (IMD) has forecast more heatwaves and warmer summers this year. Hot weather conditions are likely to propel demand for air conditioning units further.

Voltas stated that its volume growth was 72% year-on-year in the March quarter of FY24 which usually sees slower sales of compressor-based cooling products due to convenient temperatures.

The company said it is expanding its retail and distribution network further to cater to the growing product portfolio.

Voltas also registered a sharp volume growth in other cooling products such as air cooler and commercial refrigeration products. Its home appliances brand Voltas Beko, a JV with Turkish appliances maker Arcelik, also achieved the milestone of selling close to two million home appliances (refrigerators and washing machines) units in FY24.

"Overall, 5 million consumer products were sold to happy customers across the country by Voltas in FY24," Voltas said.

Voltas shares rallied up to 13% to hit a 52-week high of ₹1,392 on NSE. More than 37 lakh shares changed hands on the NSE, The stock hit a 52-week high of ₹1,373.20 on BSE.

Voltas shares were trading 8.6% higher at ₹1,338 on NSE at 10:25 am.