The Indian air conditioning market is projected to grow from $5.41 billion in 2024 to $8.07 billion by 2030, with a CAGR of 6.9 percent driven by urbanization and rising disposable incomes. The deep freezer market is also expanding and is expected to reach $4,058.79 million by 2032 with a CAGR of 25.2 percent, fueled by increasing demand in residential and commercial sectors.
In this article, we will look at Virtuoso Optoelectronics which deals in the manufacturing of White Goods and offers Electronics Manufacturing Services anticipates topline growth upto 55% for FY26 and expects Rs. 700 crore revenue for FY25.
Price Movement
With a market capitalization of Rs. 1,118.87 Crores, the shares of Virtuoso Optoelectronics opened at Rs. 489.90 on Thursday which was up by 4.12 percent from the previous closing price of Rs. 470.50 per share. The stock has delivered around 99 percent in the past year and has outperformed the Nifty Index.
H1FY25 Financials Overview
The company’s recent financial results are semi-annually. The revenue from operations was at Rs. 310 crores for H1FY25, an increase of 30.25 percent year on year from Rs. 238 crores in H1FY24. The Net profits increased by 144.44 percent from Rs. 3.51 crore in H1FY24 to Rs. 8.58 crore in H1FY25. In the recent business update, the company has revealed its revenues grew by 44 percent to Rs. 151 crore for Q3FY25 on a year-on-year basis.
The EBITDA margins for the current half-year stood at 9 percent, a decline of 100 basic points from 10 percent on a year-on-year basis. The Profit after Tax (PAT) margins jumped to 2.7 percent from 1.5 percent in the same period.
Revenue Guidance
The company expects to reach ~Rs. 700 crore revenue in FY25 and is looking to grow its topline by 45 to 55 percent on a year-on-year basis in FY26 aided by capacity increase.
Capex Plans
Virtuoso has planned to setup its second component manufacturing under VPPL at Sanand, Ahmedabad in FY26. Further, they are setting up a manufacturing facility for reciprocating compressors in Nashik and semi-automatic washing machines, both are expected to be commercialized before the end of CY25.
Manufacturing Capacity for FY26
As per the Company’s Business Update for Q3FY25 and 9MFY25.
| Products | Existing Capacity (FY25, in Units) | Planned Capacity (FY26, in Units) |
| Air Conditioners – Outdoor Unit (ODU) | 4,00,000 | 10,00,000 |
| Air Conditioners – Indoor Unit (IDU) | 8,00,000 | 10,00,000 |
| Lighting Products (Lamp equivalents units) | 6,00,00,000 | 6,00,00,000 |
| Water Dispensers | 1,50,000 | 2,00,000 |
| Commercial Refrigeration | 1,50,000 | 4,00,000 |
Business Mix
The company earns its operational revenue from AC which contributed around 80 percent including PLI benefits and the remaining 20 percent from Lighting and Other Components. The margins for AC stands around 6 to 8 percent and Lighting is around 10 to 15 percent. The LED components are 40 percent sourced and 60 percent in-house.
Management Commentary
Commenting on the development, the MD of Virtuoso Optoelectronics, Sukrit Bharati said “The year started positively for VOEPL, with a steady demand during the year. Overall sales aligned with company projections. During the year there is an identified need to expand capacity in the Air Conditioning Segment due to potential capacity constraints, this in view of the higher demand expected in the coming year.
Further, with the introduction of new product segments/categories and ongoing expansions, the goal is to increase both existing and new product sales, thereby improving both the bottom line and top line in future financial years. The focus remains on meeting targets and ensuring customer satisfaction.”
Company Overview
Virtuoso Optoelectronics was established in 2015 and is into manufacturing of consumer electronics and offers electronics manufacturing services. They produce white goods such as air conditioners and water heaters while operating as both an OEM and ODM.
Written by Santhosh
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