Nomura said scrapping the 12 per cent GST slab could bring major tax relief for tractors and ACs, boosting demand and pricing.
According to JM Financial, Voltas and the overall RAC industry saw a 20-25 per cent year-on-year (Y-o-Y) volume decline in April and May, primarily due to unseasonal weather.
The Union Budget 2025-26 has exempted annual income up to Rs 12 lakh from income tax, boosting consumer spending and adding focus on urban consumption.
The fall in the share price came on the back of profit booking after the company posted stellar September quarter of financial year 2025 (Q2FY25) results on Tuesday, October 29, 2024
Distribution expansion, launches may perk up firm's showing
Voltas is also reviving its plan to make AC compressors locally in partnership with a South Korean or Japanese firm
Air conditioner maker Voltas on Thursday reported a consolidated net profit of Rs 36 crore for the second quarter ended September 30. The company had reported a net loss of Rs 6 crore in the July-September period of the last fiscal. Its total income increased to Rs 2,364 crore for the second quarter against Rs 1,833 crore in the year-ago period, Voltas Ltd said in a regulatory filing. The company said its board has approved a proposal to raise up to Rs 500 crore through the issuance of rated, listed, unsecured, redeemable non-convertible debentures (NCDs) on a private placement basis. The funds would be utilised for the capital expenditure for its new manufacturing plants at Chennai and Waghodia in Gujarat, it added. Shares of the company on Thursday ended 0.68 per cent up at Rs 839.30 apiece on the BSE.
After a sluggish demand due to Covid-19 induced lockdown, commodity inflation stares before consumer durables sector. However, analysts see a new ray of hope with expectation of a blockbuster summer.
While pricing action is expected, margins may remain under pressure for Voltas.
Voltas Ltd on Friday reported 24.93 per cent decline in The Tata group firm had posted a consolidated net profit of Rs 128.64 crore for the year-ago period, Voltas said in a regulatory filing
The company has been able to gain share in cooling products despite strong competitive pressures
Analysts turn cautious following a near 40 per cent gain in last three months
Competition may also disrupt profitability
Channel checks by brokerages have pointed towards higher sales, which have helped reduce channel inventories
Though analysts say May has been better and June has seen some improvement, there are other pressure points
According to analysts, the early onset of summer might help AC manufacturers in hiking prices, which will support margins and drive their top line
Strong AC segment prospects, rising margins in projects business to aid earnings