Latest news with #VoltasLtd
Business Standard
11 hours ago
- Business
- Business Standard
Voltas Ltd Falls 0.5%
Voltas Ltd has lost 1.17% over last one month compared to 2.76% fall in BSE Consumer Durables index and 0.3% drop in the SENSEX Voltas Ltd lost 0.5% today to trade at Rs 1253.55. The BSE Consumer Durables index is down 0.24% to quote at 57024.44. The index is down 2.76 % over last one month. Among the other constituents of the index, Whirlpool of India Ltd decreased 0.1% on the day. The BSE Consumer Durables index went down 2.75 % over last one year compared to the 5% surge in benchmark SENSEX. Voltas Ltd has lost 1.17% over last one month compared to 2.76% fall in BSE Consumer Durables index and 0.3% drop in the SENSEX. On the BSE, 409 shares were traded in the counter so far compared with average daily volumes of 62446 shares in the past one month. The stock hit a record high of Rs 1946.2 on 20 Sep 2024. The stock hit a 52-week low of Rs 1135.55 on 01 Feb 2025.
Time of India
12 hours ago
- Business
- Time of India
Buy Voltas, target price Rs 1,420: HDFC Securities
HDFC Securities maintains buy call on Voltas with a revised target price of Rs 1,420. The current market price of Voltas Ltd. is Rs 1295. Voltas, incorporated in 1954, is a Large Cap company with a market cap of Rs 42,733.76 crore, operating in Consumer Durables sector. Voltas' key products/revenue segments include Electrical Goods, Sale of services, Contract Revenue, Other Operating Revenue and Scrap for the year ending 31-Mar-2024. Financial Performance For the quarter ended 31-03-2025, the company has reported a Consolidated Total Income of Rs 4,847.25 crore, up 53.19% from last quarter Total Income of Rs 3,164.16 crore and up 13.86% from last year same quarter Total Income of Rs 4,257.30 crore. The company has reported net profit after tax of Rs 267.66 crore in latest quarter. The company's top management includes N Tata, Bakshi, Bansal, Kumar Adhikari, N Vakil, Sarangi, Tulsidas Merchant, Menon, Agrawal, Deshpande, S Dubash, P Verma, Mr.V P Malhotra. Company has S R B C & Co. LLP as its auditors. As on 31-03-2025, the company has a total of 33.09 Crore shares outstanding. Live Events Investment Rationale HDFC Securities anticipates a weak Q1FY26 for the company due to weak demand and a high base effect. They expect growth to rebound in Q2FY26. Furthermore, and project healthy growth in Q3FY26, as RAC prices are likely to increase from January 2026, driven by new rating change regulations. Considering the weak demand during the peak Q1 season, they have revised our revenue estimates downward by 10% for FY26 and 5% for FY27. Similarly, APAT estimates have been cut by 11% for FY26 and 7% for FY27. The brokerage now models a CAGR of 10% for revenue, 15% for EBITDA, and 17% for APAT over FY25-27E. HDFC Securities values Voltas UPC business at 40x EPS Mar-27E and the EMPS and Engineering Products and Services (EPS) business at 20x EPS Mar-27E each; the loss-making Beko is valued at 2x FY27 sales, translating into ~40x Mar-27E EPS. The brokerage maintains BUY on Voltas with a lower target price of Rs 1,420/share.
Mint
a day ago
- Business
- Mint
Dull summer casts a cloud on Voltas's air conditioner volumes in Q1
This year's summer seems to have ended in a rush thanks to unseasonal rains. But this has left air conditioners in a spot, with their sales suffering during the typically strong June quarter. In a recent analyst interaction, Voltas Ltd said room air conditioner volumes had dropped 20-25% year-on-year in April and May, for both the company and the industry. Voltas's unitary cooling products segment, largely comprising room air conditioners, contributed 69% of its total revenue in 2024-25. Some recovery was visible in June, but only in parts of north India. With channel inventory at 6-8 weeks and weak secondary demand, the overall air conditioner industry is tracking well below expectations in the ongoing April-June financial first quarter (Q1FY26). With inventory piling up at dealers, the industry is offering free installation and bundled deals to move stock, raising the risk of discounting if demand remains sluggish. Voltas's room air conditioner plant in Chennai is running at suboptimal utilisation. The company's management expects this to improve to 75-80% by the end of FY26, provided volumes recover meaningfully in the second half. The management, however, said the company gained market share in April. Still, persistent volume pressure could weigh on Voltas's profit margins and FY26 earnings. Voltas believes its unitary cooling products (UCP) segment can achieve a high single-digit Ebit margin in FY26. Also read | Blue Star faces the heat in Q1 from a milder summer season Risk factors 'Rising competition and aggressive pricing/higher discounts to recover market share are likely to lead to margin risks for Voltas despite production-linked incentives. Increased backward integration should keep costs elevated," Nomura said in a recent report. The investment bank has factored in a 10%/21% UCP volume growth for Voltas in FY26/27, while maintaining Ebit margin at 8.5%/9.0%. New Bureau of Energy Efficiency (BEE) standards for air conditioners from January will raise unit costs by ₹800-1,000, which Voltas intends to pass on to consumers via price hikes. This could drive purchases in Q3FY26 (October-December). Another relative bright spot is VoltBek, Voltas's joint venture with Turkey's Arçelik for large household appliances. The JV posted 57% volume growth in FY25, though much of that came from lower-margin stock-keeping units (SKUs), keeping profitability elusive. The management plans to contain VoltBek Ebitda margin at -5% in FY26. In the electro-mechanical projects and services business, Voltas is cautious on international projects where order inflows have been slow. In contrast, domestic project activity is expected to pick up meaningfully in FY26, making it the segment's key growth driver. To be sure, at 36x FY27 estimated earnings, as per Bloomberg, Voltas's stock isn't cheap. For the valuation to sustain, both demand for room air conditioners and the company's execution must improve. Also read | Indian cement stocks become dearer than some global peers
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Business Standard
2 days ago
- Business
- Business Standard
Erratic weather hurting Indian companies in biggest consumer market
By Harshita Swaminathan and Satviki Sanjay Some of India's largest companies, already hit by a demand slump, are facing a new threat in wooing the country's 1.4 billion consumers: unpredictable weather. A cooler-than-usual summer this year — followed by the earliest onset of rain since 2009 — has hurt companies selling everything from talcum powder to air conditioners. Blue Star Ltd., one of the largest AC sellers in the country, had to cut production by as much as 25 per cent between April and June, as it saw fewer buyers. It also delayed imports of compressors, a key input, and extended credit to some dealerships saddled with unsold inventories. Rivals Havells Ltd. and Tata-owned Voltas Ltd. also flagged a sales slowdown. A four-fold jump in frequency, unpredictability and intensity of extreme weather events in India over the past four decades has made planning and preparedness more demanding for companies. From Hindustan Unilever Ltd. to food delivery app Zomato-owner Eternal Ltd. to engineering giant Larsen & Tourbro Ltd., it's affecting everything from sales to labor and supply chain management in the world's biggest consumer market. India's situation as one of the most affected nations by climate change provides a glimpse of what's in store for other major economies as environmental change accelerates. As record-breaking temperatures, rains and other extreme weather occur worldwide, companies are likely to be left scrambling to predict and plan for the future. Earnings calls On earnings calls over the last six months, top management and equity analysts discussed 'delayed summer' and 'delayed winter' the most in five years, according to transcripts analyzed by Bloomberg News. 'This quarter is slightly challenging as far as the summer portfolio is concerned,' Mohan Goenka, vice chairman of Emami Ltd., whose products include talc powder, told investors on an earnings call last month. The company will try to make up for the setback through its other segments, he added. Varun Beverages Ltd., which bottles Pepsi in India, had said in April that it was ramping up production for the summer, expecting higher demand. Instead, unseasonal rains likely hurt performance at the beverage maker, according to analysts at Jefferies. The brokerage also flagged weaker demand at Dabur Ltd., which sells fruit juices, and Tata Consumer Products Ltd., which sells cold drinks. Time-sensitive summer demand, 'once missed, is difficult to recover,' analysts at Nuvama, led by Abneesh Roy, said in a note to clients. Labour shortage Rising incidence of heat waves, for example, was among factors causing a shortage of labor at Larsen, even as it split shifts between early morning and late afternoon. Eternal, which operates Zomato and Blinkit, said it faces a seasonal shortage of delivery workers in the summer. India experienced extreme weather events on 88 per cent of days in 2024 in one or more parts of the country, according to a database maintained by Centre for Science and Environment and Down To Earth. Between 1993 and 2022, the South Asian nation lost about $180 billion to severe heat and rains, the Climate Risk Index 2025 report said. Weather forecasting in India has been plagued by outdated technology and modeling systems that make it difficult to get accurate data. To bridge this gap, the country launched a new weather model last month to improve its forecasting by doubling the level of detail previously possible. Intended to improve farming and flood management, the model could also help companies as they seek better and more granular data. 'Businesses, while they were aware of the financial impact of weather, simply did not have enough reliable data that could be potentially put to use,' said Samuel John, co-founder and CEO of forecasting firm mistEO. Forecasting boom Things have changed in the half-decade since Covid, and weather forecasting has gone mainstream, John added. Outside of the farm sector, companies from industries such as consumption, quick commerce, logistics, and construction are increasingly approaching Skymet Weather Services Pvt., its chief executive officer Yogesh Patil said. These newer clients, who seek structured, calendar-linked forecasting dashboards, now make up about half of the Reliance Industries Ltd. unit's revenue. As companies navigate the new normal of erratic weather, planning and diversification are key. Blue Star's management is confident of recovering a large portion of the lost sales through the rest of the year, by working with more corporate clients where demand largely remains stable. But climate mitigation is becoming an important subject to Thiagarajan, who has worked in air conditioning for four decades. 'Predictability is dropping year after year,' he said. 'You can only be prepared for the worst.'
Business Upturn
2 days ago
- Business
- Business Upturn
Voltas shares drop 2% as Motilal Oswal downgrades stock amid weak demand
Voltas Ltd shares declined 2% in early trade after Motilal Oswal Financial Services downgraded the stock from a 'Buy' to 'Neutral' rating, citing soft demand in the Room Air Conditioner (RAC) segment. The brokerage also slashed its target price from ₹1,600 to ₹1,350, indicating a limited upside of just 4% from current levels. According to the report, Voltas witnessed a significant 20–25% year-on-year drop in RAC volumes during April and May 2025. The decline was attributed to a delayed summer and erratic rainfall patterns across key markets. While June has seen a slight recovery—especially in North India—it hasn't been sufficient to make up for the earlier volume loss. Motilal Oswal has revised its revenue estimates for the Unitary Cooling Products (UCP) segment downward by nearly 14% for FY26 and FY27. Additionally, EBITDA margin expectations have been reduced by 80bps and 40bps respectively, while EPS projections were cut by 17% for FY26 and 14% for FY27. Despite underperformance in the commercial AC and refrigeration segments, Voltas' joint venture, VoltBek, remains a bright spot. The JV recorded a 57% YoY volume growth and gained market share across categories. It also aims to achieve EBITDA break-even by FY26. Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information. Ahmedabad Plane Crash Aman Shukla is a post-graduate in mass communication . A media enthusiast who has a strong hold on communication ,content writing and copy writing. Aman is currently working as journalist at
