Shares of Voltas fell over 6 percent following the release of its September quarter financial results. Although the company showed significant annual improvement, sequential results indicated a sharp decline in earnings.
As of 9:40 AM, Voltas shares were down 6 percent at Rs 1,663. The stock has surged nearly 70 percent year-to-date, significantly outperforming the Nifty 50, which rose about 13 percent over the same period.
In the September quarter, Voltas' consolidated net profit jumped 262 percent YoY to Rs 134 crore, while revenue from operations increased 14 percent YoY to Rs 2,619 crore. However, sequentially, net profit dropped by 60 percent and revenue by 47 percent.
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The annual revenue growth was largely driven by a 56 percent surge in volume within its unitary cooling products segment. The segment's revenue rose 31 percent year-on-year to Rs 1,582.2 crore. However, this represents a decline of over 58 percent compared to the previous quarter. Voltas, a market leader in both split and window air conditioners, held a 21 percent market share as of September.
Revenue from the Electro-Mechanical Projects and Services segment fell nearly 5 percent year-on-year and over 7 percent quarter-on-quarter, totaling Rs 880 crore.
The Engineering Products and Services segment saw a 9 percent annual revenue increase but declined 9 percent sequentially to Rs 146.7 crore.
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