Voltas surges 10% to hit record high post Q4 results

The stock surged 10% to Rs 451, also its record high on BSE on back of heavy volumes

Voltas surged 10% to Rs 451, also its record high on BSE, after the company reported a better than expected 22% year-on-year (y-o-y) jumped in its consolidated net profit at Rs 200 crore in the March quarter (Q4FY17).  Net sales grew 9.7% at Rs 2,035 crore on y-o-y basis.

Analysts on an average had expected profit of Rs 153 crore and net sale of Rs 1,899 crore for the quarter.

Led by improved sales in Unitary Cooling Products, the consolidated income from operations for the year ended March 2017 was higher by 5% at Rs 6,033 crore as compared to Rs 5,720 crore in the corresponding period last year. Net profit during the year rose 30% to Rs 511 crore over the previous year, Voltas, a Tata Group Company said in a press release.

In separate regulatory filing, domestic air-conditioning major said it has formed an equal joint venture (JV) with Turkish company Ardutch BV (a subsidiary of Arçelik A.S.; part of the Koç Group) to introduce the Beko brand of home appliances in the Indian market.

The joint venture will have an equity capital of $100 million and will set up a manufacturing plant in the country, it said in a statement.

The proposed JVC will launch refrigerators, washing machines, microwaves and other white goods / domestic appliances in India. A manufacturing facility will be set up in the country, and the JVC will also source products from Arçelik’s global manufacturing facilities and vendor base, it added.

The trading volumes on the counter surged more than six-fold with a combined 9.1 million shares changing hands on the BSE and NSE till 10:08 am.