India's Voltas reports two-fold rise in profit on higher demand for air conditioners
India's Voltas 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 beat its quarterly profit estimates, driven by demand for its newly launched air conditioners, while Crompton Greaves 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 54.56 40.83 16.36 96.82 Hold 34 1.04 0.38
Blue Star 50.27 33.03 21.08 37.54 Buy 19 0.99 0.44
Havells India 63.55 43.13 20.59 26.58 Hold 21 0.95 0.50
Crompton Greaves 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
