Voltas slips after weak Q1 outcome

Voltas declined 1.75% to Rs 607.7 after the company reported a 51% decline in consolidated net profit to Rs 81.77 crore in Q1 June 2020 from Rs 166.32 crore in Q1 June 2019.

Consolidated revenue from operations tumbled 51% as well to Rs 1296.94 crore in quarter ending June 2020 as against Rs 2654 crore in the same period last year.

Voltas' profit before tax stood at Rs 107.53 crore in Q1 June 2020, falling 58% from Rs 258 crore in Q1 June 2019. Total tax expense declined 72% to Rs 25.76 crore in Q1 June 2020 over Q1 June 2019.

The group's operations and financial results for the quarter were impacted due to outbreak of Covid-19 pandemic and consequent lockdown. The business activities were resumed gradually based on the relaxations and directives issued by various government as well as local authorities in India and other countries where the group has business operations, albeit constraints of workforce and availability of project sites. The results of the current quarter are therefore not strictly comparable to the respective previous quarters.

Despite the lockdown situation and a small window of only around 40 days available (post Unlock 1) during the quarter, Voltas was able to sell around 290,000 ACs. Voltas continues to be the market leader and has sustained its No.1 position in room air conditioner business with YTD market share of 26.2%. Voltas has also maintained leadership position in Inverter ACs.

Voltas is India's largest air conditioning company, and one of the world's premier engineering solutions providers and project specialists.

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