Voltas Ltd shares fall nearly 10% 1,045 each in early deals on Friday on the BSE after the air-conditioning and engineering services company reported a 23% year-on-year (YoY) decline in its consolidated net profit. 182.7 crore in the fourth quarter ended March 2022.
Tata Group The total income of the firm was 2,703.7 crore during the period under review, as compared to marginally 0.7% 2,683 crore in the same quarter last year.
“Voltas has managed to grow despite the high base. Its market share has remained stable around 25-26% indicating intense competition in the RAC segment. While we remain structurally positive on the stock, rich valuations and Further challenges in RAC share gains could be limited in the near term from current levels. We will revisit our estimates after the earnings call. We have currently downgraded the rating on the stock with a target price of Rs. 1,190,” Yes Securities said.
voltas The said extended winter coupled with the spread of the third wave of mutants (Omicron) during January/February 2022 impacted business and consumer sentiments, resulting in reduced primary offtake of cooling products by channel partners.
However, warmer weather changed the market outlook in March 2022, resulting in partial sales improvement for the quarter, the company said.
People at ICICI Securities believe that the lower than expected performance of Voltas in Q4FY22 is due to lower EMPS segment revenue and delayed price hike.
We believe that rising demand (due to scorching heat) and hybrid work model (ie lifestyle changes) will help Voltas’ UCP segment sales in FY23. However, we await the management’s comment on the price hike to offset the higher raw material prices.”
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