Q1 2025 Voltas Ltd Earnings Call Transcript
Key Points
- Voltas Ltd (BOM:500575) reported a consolidated total income for the quarter ended June 30, 2024, higher by 46% at INR5,001 crores compared to INR3,430 crores in the corresponding quarter last year.
- The company achieved a lifetime high in profit before tax (PBT) at INR452 crores, a growth of 123% compared to INR203 crores in the corresponding quarter last year.
- Unitary Cooling Products (UCP) business continued to outperform the market with an overall volume growth of 67% over the corresponding previous quarter.
- Voltas Ltd (BOM:500575) maintained its leadership position in the air conditioning market with a market share of 21.2% as of June 2024.
- The company started commercial operations in its new RAC factory in Chennai and water dispenser line in Waghodia, enhancing its production capacity and strategic market reach.
- The extraordinary demand due to extreme weather conditions has pressurized and disrupted supply chains across the industry.
- Stock liquidation of non-QC inventory led to a slight drop in margin during the quarter.
- Margins from retrofit jobs in the commercial air conditioning vertical were lower, which moderated the overall EBIT performance for the vertical.
- Commodity prices have started to accelerate upwards, and USD-INR depreciation over the quarter has been detrimental to the profitability of the business.
- The company faced challenges in the textile industry due to fluctuations in cotton and yarn exports, leading to reduced utilization levels and margins for its agency business.
Ladies and gentlemen, good day, and welcome to the Voltas Limited Q1 FY25 earnings conference call hosted by Nirmal Bang Equities Private Limited. (Operator Instructions) Please note that this conference is being recorded. I now hand the conference over to Ms. Natasha Jain from Nirmal Bang Equities. Thank you and over to you, ma'am.
Good morning, everyone. Nirmal Bang Institutional Equities welcomes all of you to the first-quarter results conference call of Voltas Limited. I would like to thank the management of Voltas for giving us an opportunity to host the call. Management is represented by Mr. Pradeep Bakshi, Managing Director and CEO; Mr. Jitender P. Verma, Chief Financial Officer; Mr. Nikhil R. Chandarana, Head, Corporate Finance; and Mr. Vaibhav Vora, Head, Treasury. I would now like to hand over the call to the management for their opening remarks, post which we shall open the floor for Q&A. Thank you. And over to you, sir.
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