Indian air conditioner maker Voltas misses Q4 profit view on surging expenses

Voltas

07/05/2024 14:26

BENGALURU, May 7 (Reuters) - Indian air conditioner and refrigerator
maker Voltas  VOLT.NS  reported a smaller-than-expected fourth-quarter profit on
Tuesday, as mounting expenses overshadowed steady demand. 

    WHY IT'S IMPORTANT
  
    Scorching summers in the Indian subcontinent have pushed temperatures to
record highs, boosting the need for home appliances such as air conditioners and
coolers.
    However, consumer goods makers have had to offer deals and discounts to lure
inflation stricken consumers, hurting margins. 
    Delayed stocking of air conditioners due to an extended winter in parts of
the country also weighed.
    Moreover, while prices of essential materials such as copper and aluminium
have declined from their post-COVID highs, they remain elevated compared with
pre-pandemic levels.
    Rival Blue Star  BLUS.NS  posted a more than 46% jump in fourth-quarter
profit buoyed by heavy demand for its ACs as consumers prepared for a
hotter-than-usual summer.
     
    BY THE NUMBERS
  
    Mumbai-based Voltas' consolidated net profit fell 19% to 1.16 billion rupees
(about $14 million) for the three months ended March 31, missing analysts'
expectations of 2.13 billion rupees.
    The company's revenue from operations rose over 42% to 42.03 billion rupees,
beating analysts' expectations of 38.13 billion rupees, while total expenses
surged nearly 47% from a year earlier.
    Revenue from Voltas' unitary cooling products segments, which includes air
conditioners, air coolers, and commercial refrigeration, grew 44% year-on-year.



($1 = 83.4919 Indian rupees)

 (Reporting by Navamya Ganesh Acharya and Ashna Teresa Britto in Bengaluru;
Editing by Mrigank Dhaniwala)
 ((Navamya.GaneshAcharya@thomsonreuters.com; +91 8805175330 ;))