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Voltas Shares Slide Nearly 8% After Q1 Profit Plunges 58% on Subdued AC Demand

Management describes the weak quarter as a one-off blip with upcoming energy-efficiency norms expected to prompt channel restocking

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Overview

  • Voltas reported a 58% year-on-year drop in net profit to Rs 140.6 crore after unseasonal monsoon rains curtailed air conditioner sales.
  • Quarterly revenue fell 20% to Rs 3,938.6 crore while EBITDA halved to Rs 178.6 crore and operating margins contracted to 4.5%.
  • Revenue in the Unitary Cooling Products division slid to Rs 2,868 crore and EBIT dropped to Rs 104 crore.
  • Shares tumbled nearly 8% to an intraday low of Rs 1,202.20 on the Bombay Stock Exchange following the earnings report.
  • Analysts maintain a consensus Buy rating with an average price target of Rs 1,387 as management leans on brand strength, broad distribution and forthcoming efficiency regulations for recovery.