Voltas Q1 Preview: Tata Group AC maker's profit likely to soar 60%

Voltas Q1 Preview: The home appliances company is expected to see a huge jump of 60 per cent in its consolidated profit after tax as the Tata Group company announces its first-quarter results on Friday. Zee Business research estimates the company's profit to jump to Rs 175 crore in the first quarter of the current financial year as against Rs 109 crore in the year-ago period.

Analysts estimate the company to report an 8 per cent rise in revenue from operations, which are likely to jump to Rs 3,001 crore in the April-June quarter from Rs 2,768 crore in the corresponding period last year.

The company's Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBIDTA), a key financial metric, is likely to soar 35 per cent to Rs 239 crore in the quarter under review from Rs 177 crore in the first quarter of the financial year 2022-23.

Voltas' margins are also expected to grow to 8 per cent in the current quarter from 6 per cent in the same quarter a year ago.

Analysts predict that unseasonal rains and increasing competition among companies may impact Volatas results.

However, analysts predict that certain factors can also favour the company.

The AC income is expected to rise by 25 per cent, while the AC margins are estimated to remain at 8 per cent.

The demand for appliances is strong, and a healthy growth rate of 25 per cent is expected in the electro-mechanical projects and services (EMPS) segment. 

However, analysts also estimate that the company's Beko business, which deals with kitchen and home appliances, can continue to bleed with losses.

Investors are expected to keep an eye on the AC market share.