India's Voltas reports two-fold rise in profit on higher demand for air conditioners

Voltas

12/08/2024 04:53

BENGALURU, Aug 12 (Reuters) - India's Voltas  VOLT.NS  posted a more than two-fold jump in its
first-quarter profit on Monday as consumers bought more of its air conditioners and coolers amid
unprecedented heatwaves across the country.
    The company's consolidated net profit jumped to 3.34 billion rupees (nearly $40 million) from 1.29
billion rupees a year earlier.
    Revenue from operations for the company, which also makes AC stabilizers, rose 47% to 49.04 billion
rupees, led by a 51% growth in its cooling products segment. 
    
    KEY CONTEXT
    The summer season increases demand for appliances such as air conditioners and coolers as well as
products like voltage stabilizers to protect against power surges that are frequent during this period.
    Last week, rival Blue Star  BLUS.NS  beat its quarterly profit estimates, driven by demand for its
newly launched air conditioners, while Crompton Greaves  CROP.NS  also topped June-quarter profit
estimates, led by higher demand for its fans and coolers. 
    
    PEER COMPARISON
    
                                              Estimates (next          Analysts' sentiment         
                                                12 months)                                         
                   RIC        PE     EV/EBI  Revenue  Profit    Mean      # of       Stock to      Div
                                     TDA     growth   growth    rating*   analysts   price         yield
                                             (%)      (%)                            target**      (%)
 Voltas             VOLT.NS   54.56   40.83   16.36    96.82    Hold             34      1.04         0.38
 Blue Star          BLUS.NS   50.27   33.03   21.08    37.54    Buy              19      0.99         0.44
 Havells India      HVEL.NS   63.55   43.13   20.59    26.58    Hold             21      0.95         0.50
 Crompton Greaves   CROP.NS   45.99   28.68   12.80    31.30    Buy              31      0.92         0.69
 Consumer                                                                                          
 Electricals                                                                                       
 * Mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** Ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is
trading above the PT
    
    APRIL TO JUNE STOCK PERFORMANCE 
   -- All data from LSEG
   -- $1 = 83.9410 Indian rupees

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APRIL TO JUNE STOCK PERFORMANCE    https://tmsnrt.rs/3YFdzd6
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 (Reporting by Kashish Tandon in Bengaluru; Editing by Sonia Cheema)
 ((Kashish.Tandon@thomsonreuters.com; 8800437922;))