The shares of the multinational home appliances manufacturer gained up to 2 percent after the company became a part of the MSCI Global Standard Index.
With a market capitalization of Rs 57,767.51 crore, Voltas Ltd’s shares were trading at Rs 1,745.85 per share, increasing around 0.48 percent from the previous closing price of Rs 1737.50 apiece.
Reason for Rise:-
The shares of the company have seen positive movement after Voltas Ltd became a part of the MSCI Global Standard Index, among the new entrants, voltas is expected to attract the highest inflow of $312 million, followed by BSE at $259 million. Kalyan Jewellers, Oberoi Realty, and Alkem Labs are estimated to receive $241 million, $215 million, and $204 million, respectively.
Financial Performance:-
Recently, Voltas Ltd announced its financial performance. Revenue jumped by 14 percent on a year-on-year basis from Rs 2,293 crore in Q2FY24 to Rs 2,619 crore in Q2FY25. However, on a Quarter-on-Quarter basis, revenue soared by 47 percent from Rs 4,921 crore in Q1FY25 to Rs 2,619 crore in Q2Y25.
Moreover, net profit is magnified by 250 percent on a yearly basis from Rs 36 crore in Q2FY24 to Rs 133 crore in Q2FY25, meanwhile, on a quarter-on-quarter basis, net profit also plummeted by 60 percent from Rs 335 crore in Q1FY25 to Rs 133 crore in Q2FY25.
Segment Performance:-
Voltas’s Unitary Cooling Products (UCP) contributed 77% of total revenue, with a revenue of ₹3,802 crores, marking a 51% growth from ₹2,514 crores YoY. Volume growth of 67% YoY attributed to extreme weather conditions and strong consumer demand. Market share reached 21.2% as of June 2024, with an increase of 800 basis points over the nearest competitor.
Expansion & Market Positioning:-
The company’s new RAC factory in Chennai has commenced operations with a capacity of 1 million units, along with a water dispenser line in Waghodia. additionally, investments in production capabilities aimed at meeting rising demand in underpenetrated markets.
Moreover, strong brand reputation and consumer trust have been pivotal in regaining market share, attributed to effective supply chain management and distribution networks. Meanwhile, management emphasized sustainable strategies rather than aggressive discounting to enhance market share.
Challenges and Outlook:-
In Q2 FY25, the company expects a lean period due to seasonal demand shifts, compounded by geopolitical and inflationary pressures on economic activity.
Despite challenges, management aims to sustain high single-digit margins, carefully selecting projects, particularly in Electro-Mechanical Projects.
Looking ahead, the company is optimistic about India’s growth trajectory, expecting strong demand for cooling products driven by low penetration levels and rising per capita income over the next 10–20 years.
Company profile:-
Voltas Limited is an India-based air conditioning and engineering solutions provider and a projects specialist. The Company’s segments include Unitary Cooling Products, Electro-Mechanical Projects and Services, and Engineering Products and Services.
Written by:- Abhishek Singh
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