Downgrades may pressure Voltas stock, QCO norms could impact sales

While most analysts have made EPS estimate downgrades for FY24, quite a few continue to recommend "Buy/ Accumulate" in expectations of strong overall growth through FY26

In the July to September quarter of 2023-24 (Q2FY24), Voltas’ revenues grew by 29.7 per cent year-on-year (Y-o-Y), but the adjusted net profit was down by 63 per cent Y-o-Y.

The revenues hit Rs 2,290 crore, led by growth in the Unitary Cooling Products segment (up 15.4 per cent Y-o-Y, and in the EMP (Electromechanical project) business (up 66.8 per cent Y-o-Y).

The UCP revenue rose to Rs 1,200 crore in Q2FY24, driven by volume growth despite weak consumer spending – the three-year annual growth is 18 per cent.

A focus on inverters contributed to a rise in overall margin.