Voltas rallies 9%, hits record high on strong Q1 results, heavy volumes

Voltas share price record high: The unitary cooling products business, which accounts for 76 per cent of total income, continued to outperform the market

Voltas share price today hit a record high of Rs 1,563 on the BSE on Monday. This comes after Voltas share price rallied 9 per cent on the BSE in the intraday trade in an otherwise weak market after the company reported a strong set of earnings for the June quarter (Q1FY25).

Voltas's consolidated profit after tax (PAT) jumped 160 per cent year-on-year (Y-o-Y) to Rs 335 crore, on the back of healthy operational performance. The global air conditioning and engineering services provider of the Tata Group had posted net profit of Rs 129 crore in Q1FY24.

Voltas stock surpassed its previous high of Rs 1,560, touched on July 30, 2024. At 10:11 AM, it was quoting 7 per cent higher at Rs 1,533 as compared to 0.44 per cent decline in the BSE Sensex. The average trading volume on the counter more-than-doubled with a combined 5.2 million shares changing hands on the NSE and BSE till the time of writing of this report.

Voltas holds a leadership position in India's cooling products market, particularly as the country's leading Room Air Conditioner brand. Moreover, the company also has a strong presence in Engineering Products and Electromechanical Projects and Services in India (through Universal MEP Projects and Engineering Services Limited) and in the Middle East Region.

The company's consolidated total income for Q1FY25 was higher by 46 per cent Y-o-Y to Rs 5,001 crore as compared to Rs 3,430 crore in the corresponding quarter last year.

The unitary cooling products business, which accounts for 76 per cent of total income, continued to outperform the market and maintained its growth momentum. Overall volume grew by 67 per cent. The overall segment revenue grew by 51 per cent year-on-year (Y-o-Y) to Rs 3,802 crore.

India's Air Cooler market is projected to grow at a CAGR of 7.4 per cent from 2022 to 2027, as forecasted by the IMARC Group. This growth is likely to be propelled by higher disposable incomes and an increasing share of organised distribution channels. 

Air Coolers offer benefits like improved air quality and energy efficiency, making them ideal cooling solutions in dry environments. Additionally, Air Coolers remain a vital household appliance in regions with limited power supply, which further solidifies their relevance. 

"With the impending energy efficiency norms for Air Cooler to be implemented by BEE (Bureau of Energy Efficiency), it is expected that the market will shift rapidly from unorganised to organised players in the near future. The added extension of water heaters provides a year-round opportunity for sales even during winter months, thereby providing better ROI for channel partners as well," Voltas had said in its FY24 annual report.