Voltas Q2 net up 3% on lower sales

Air conditioning and engineering services major Voltas reported a 2.53 per cent increase in net profit to Rs 42.93 crore for the quarter ended September 30, 2012 versus Rs 41.87 crore last year. Net sales for the quarter stood at Rs 1,160.10 crore versus Rs 1101.93 crore last year.

The growth in sales was just five per cent.

Barring its cooling products division, which grew 22 per cent in terms of revenues during the quarter, Voltas's other divisions - electro-mechanical projects & services and engineering products & services - were sluggish in terms of revenue growth thanks to a slowdown in these segments, the company said. Electro-mechanical projects grew 2 per cent only, while engineering products & services degrew during the quarter.

Voltas derives nearly 62 per cent of its revenues from electro-mechanical projects, followed by air conditioning at 30 per cent and the balance 8 per cent from engineering products.

Voltas said that it continues to retain its market leadership in room air conditioners and is the leading brand in multi-brand outlets, according to GFK Nielsen.

The stock of Voltas was up 1.12 per cent on the Bombay Stock Exchange (BSE) to close the day at Rs 117.20. Its intra-day high was Rs 119, while its intra-day low was Rs 115.