Voltas Ltd, the Tata group air conditioning and engineering services company, saw its share price initially react positively following the announcement of its financial results for the quarter ending March 2025. The stock rose by 3.5% during Thursday's trading session and climbed over 3% on the BSE, reaching an intraday high of ₹1,287.60. However, the stock is currently trading at a decline of ₹0.43% at 1239.20.
Voltas reported a significant surge in net profit for the March quarter (Q4 FY25), which more than doubled to ₹236 crore. This compares favourably to the net profit of ₹111 crore reported for the January-March quarter of FY24. For the full fiscal year ending March 2025, Voltas's net profit saw a substantial increase, soaring more than four times to ₹834.28 crore. The company stated this represents the largest profit in its history. Annual revenue for FY25 exceeded ₹15,000 crore, primarily driven by its room air conditioning segment.
Quarterly revenue from operations for the March quarter reached ₹4,728.04 crore, a 12.77% increase. Total income for Q4 FY25 rose 14% to ₹4,847 crore, compared to ₹4,257 crore in the prior year. The company's Q4 FY25 EBITDA surged by 74.6% to ₹332.8 crore from ₹191 crore. The operating margin improved to 7% from 4.5% a year ago, slightly below the expected 7.2%.
The board of directors has proposed a dividend of ₹7 per share with a face value of Re 1 per share for the 2024-25 fiscal year.
The strong performance of Voltas's Unitary Cooling Products (UCP) division achieved significant revenue growth due to robust demand for Room Air Conditioners (RAC) in FY25, with volume increasing by 30% year-over-year. Additionally, the VoltBek joint venture experienced impressive volume growth of 56% in FY25 and gained considerable market share in refrigerators and washing machines.
The stock is down 32% year-to-date, though it has delivered a 55% gain over the past two years. Voltas’ current market capitalisation stands at ₹41,176 crore. At 13:15 PM, the company’s stock was trading at ₹1239.20 marginally declining by 0.43%.
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