Voltas Ltd reports 19% decline in Q4 net profit

The Tata Group company Voltas’ consolidated earnings from operations climbed 42% to Rs 4,203 crore in Q4FY24.

Financial Performance 

Voltas Ltd, a leading AC maker, reported a 19% decline in consolidated net profit for the quarter ended March 31, 2024. 

The consolidated net profit attributable to owners stood at Rs 116 crore, compared to Rs 144 crore in the year-ago period. 

Despite the decrease in net profit, the company’s consolidated revenue from operations witnessed a significant increase of 42%, reaching Rs 4,203 crore in Q4FY24 compared to Rs 2,957 crore in Q4FY23.

Share Performance 

On May 7, Voltas’ shares closed trading 4.4% lower at Rs 1,382.7 apiece. The decline in share price reflects the market’s response to the company’s financial results.

Dividend Recommendation 

Voltas’ board recommended a dividend of Rs 5.5 per share on a face value of Re 1 per share for the fiscal year 2023-24. This dividend payout reflects the company’s commitment to delivering value to its shareholders.

EBITDA and Margins 

The firm’s EBITDA fell 13% to Rs 190.6 crore compared to Rs 218 crore in the year-ago period. Additionally, the firm’s margins declined by 290 basis points in Q4FY24, standing at 4.5% as compared to 7.38% in Q4FY23. 

These declines indicate the challenges faced by Voltas in maintaining profitability and operational efficiency during the quarter.

Despite the decrease in net profit and EBITDA, Voltas remains a significant player in the AC industry, and its revenue growth demonstrates its resilience amidst market dynamics. 

The company’s focus on innovation, customer satisfaction, and strategic investments will be crucial in navigating future challenges and sustaining long-term growth.