Margin pressures may cap upsides for Voltas; Dec quarter show mixed

After two dismal seasons, the sector is hoping for a recovery this year

The December quarter performance of air conditioning major Voltas was a mixed one. While its unitary cooling products (UCP) segment outperformed expectations, the projects division disappointed. In addition to air conditioners and air coolers for the retail segment, the UCP portfolio also includes commercial refrigeration products. It accounts for 62 per cent of the company’s revenues.

The segment reported a revenue growth of 9 per cent as compared to the lower single-digit growth the Street was working with. Growth was largely due to higher realisations and volumes which fell lower than expected in a weak season. The company’s 4 per