Voltas Q1 net up nearly 50% to Rs 122 cr; revenue up 36% to Rs 1,860 cr

Air conditioning and engineering services provider Voltas Ltd on Friday reported a 49.73 per cent increase in its consolidated net profit at Rs 122.44 crore in the first quarter ended June 2021.

The Tata group firm had posted a consolidated net profit of Rs 81.77 crore in the April-June quarter last fiscal, Voltas said in a regulatory filing.

Its total income was up 36.34 per cent to Rs 1,860.17 crore during the period under review, as against Rs 1,364.34 crore in the corresponding period of the previous fiscal.

"The Group's operations and financial results for the quarter ended June 30, 2021, have been impacted due to outbreak of the second wave of COVID-19 pandemic during the peak season because of lockdowns and restricted operational hours even after easing of state-wide lockdowns," Voltas said in a post earnings statement.

Business activities have been resumed gradually following the relaxations and directives issued by various state governments as well as local authorities in India and other countries where the group has business operations, albeit, with constraints of the workforce and free accessibility to the project sites, it added.

Voltas' total expenses were at Rs 1,661.53 crore, up 33.44 per cent in Q1/FY 2021-22, as against Rs 1,245.13 crore.

The revenue from "Unitary Cooling Products for Comfort and Commercial use" was up 18.70 per cent to Rs 963.11 crore, as against Rs 811.32 crore of the corresponding quarter last fiscal.

"Given the smaller window available during the quarter, upon easing of the lockdowns, the Unitary Cooling Products business made good recovery and achieved overall volume growth of 10 per cent," it added.

Revenue from "Electro-Mechanical Projects and Services" was up 67.16 per cent to Rs 688.42 crore, as against Rs 411.83 crore.

"Improvement in revenue and result was due to good progress made on execution of certain on-going projects," it said.

While, "Engineering Products and Services" was up over two-fold to Rs 115.06 crore, as against Rs 47.61 crore.

On the possible impact of COVID-19 pandemic on its operations, liquidity position and recoverability of its asset balance during the quarter, Voltas said "it may be different from that estimated as at the date of approval of these financial results..."

It will continue to monitor any material changes arising due to the impact of this pandemic on the financial and operational performance of the Group and take necessary measures to address the situation, Voltas added.

Shares of Voltas Ltd on Friday were trading at Rs 1,049.75 on BSE, up 0.44 per cent from the previous close.