Voltas to raise prices of ACs on input costs

Voltas, a Tata Group company, said it has decided to raise the prices of air conditioners and packaged air conditioning units due to spiralling input costs.

The prices of raw materials like steel and copper, both of which went up by more than 30 per cent in recent times, have pushed up operating cost of the company, said M M Miyajiwala, executive vice-president and chief financial officer.

Voltas’ expenses in the first-quarter rose by 23 per cent to Rs 933 crore. High input cost has already eroded margins of several companies, which announced their first quarter results recently.

Miyajiwala further added that the company has not taken a final decision on the quantum of the price hike or either the time period.

Voltas has joined a league of other consumer durable companies, including Samsung, Godrej and others who recently announced a price hike. Automobile companies like Maruti, Mahindra and Tata Motors have also raised prices.

The Mumbai-based company’s net profit rose 63.20 per cent to Rs 85.13 crore for the quarter ended on June 30, 2008 as compared to Rs 52.16 crore posted in the corresponding quarter of the previous year. Net sales for the same period grew by 22 per cent to Rs 1,006.73 crore as compared to Rs 824.93 crore reported in the same quarter a year ago.