India's Voltas Q4 profit slumps on provisions over contract terminations

Blue Star

26/04/2023 15:48

BENGALURU, April 26 (Reuters) - India's Voltas Ltd
 VOLT.NS  posted a 21.2% drop in fourth-quarter profit, as the
air conditioner and refrigerator maker remained under pressure
from the termination of some overseas contracts.
    Consolidated net profit fell to 1.44 billion rupees ($17.62
million) in the quarter ended March 31, compared with 1.83
billion rupees a year earlier, the company said. 
    Voltas, which competes with Blue Star  BLUS.NS , made
provisions of 2.44 billion rupees during the quarter due to the
termination of some contracts in Dubai and Qatar last year. 
    The contract terminations have been a drag on Voltas for
three straight quarters.
    Revenue from operations rose nearly 10.9% to 29.57 billion
rupees for the three months ended March 31, from 26.67 billion
rupees a year earlier. 
    Its biggest segment, unitary cooling products, reported a
12.7% rise in revenue. 
    "The unitary cooling products business has relatively
performed better amid the lower consumer sentiment towards
discretionary spend and incessant rains in March 2023," Voltas
said in a statement.

($1 = 81.7400 Indian rupees)

 (Reporting by Anisha Ajith in Bengaluru; Editing by Sriraj
Kalluvila)
 ((anisha.ajith@thomsonreuters.com;))