Consumer durables major Voltas reported a robust second-quarter performance with net profit soaring to Rs 134 crore, a substantial increase from Rs 36.7 crore in the same period last year. The company’s revenue from operations rose 14.3 percent year-on-year, reaching Rs 2,619 crore, compared to Rs 2,292 crore in the prior year’s quarter.*

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Strong growth in cooling products boosts top line

Voltas’ unitary cooling products segment led revenue growth, achieving a 31 percent increase to Rs 1,582.19 crore, up from Rs 1,208.80 crore a year ago. This growth was anchored by Voltas' leadership position in both split and window air conditioners, securing a market share of 21 percent by September 2024, according to the company’s release.

Margin improvement and EBITDA performance

The company posted an EBITDA of Rs 152 crore, with margins slightly improved to 5.8 percent, aligning with analyst forecasts. Analysts had anticipated Rs 149 crore in EBITDA, while profit expectations were slightly lower than Voltas’ reported Rs 134 crore net profit, which exceeded the Rs 121 crore estimate. Revenue for the quarter met market expectations.

Revenue from the electro-mechanical projects and services division declined marginally to Rs 879.91 crore, down from Rs 924.19 crore in the corresponding quarter last year. Despite the drop in this segment, the overall performance remains buoyant due to robust growth in cooling products.

Voltas' shares closed at Rs 1,770.60 on Tuesday, up 0.47 percent following the earnings announcement.