Voltas (VOLTAS) Q1 24/25 earnings summary

Executive summary

• Achieved record revenue and profit in Q1 FY25, driven by strong demand across all business segments, especially unitary cooling products (UCP), with 1 million AC units sold in 88 days and a 21.2% market share by June 2024.

• Voltas Beko home appliances brand delivered over 50% volume growth, improved market share in washing machines and refrigerators, and reduced losses, moving toward EBITDA breakeven.

• Commercial refrigeration and air cooler categories posted significant growth, with air coolers up 170% in volume and becoming the No. 2 brand with 10.5% market share.

• Celebrated 70 years of operations, highlighting resilience, innovation, and market leadership in air conditioning and engineering solutions.

• Expanded manufacturing capacity with new plants and backward integration, supporting growth in consumer durables and commercial refrigeration.

Financial highlights

• Consolidated total income for Q1 FY25 was INR 5,001 crore, up 46% year-over-year; revenue from operations was INR 4,921 crore.

• Profit before tax reached an all-time high of INR 452 crore, up 123% year-over-year.

• Net profit after tax was INR 335 crore, up 160% year-over-year.

• Earnings per share for Q1 FY25 was INR 10.10, up from INR 3.91 in Q1 FY24.

• UCP segment revenue was INR 3,803 crore, up 51% year-over-year; EBIT for UCP was INR 327 crore, up 58%.

Outlook and guidance

• Q2 is expected to be a lean period for cooling products, but festival season may spur demand.

• Management maintains guidance for high single-digit profit margins and expects improvement in commercial air conditioning EBIT performance in subsequent quarters.

• Anticipates increased order bookings in infrastructure solutions in the latter half of the year.

• Focus remains on retaining market leadership and scaling up business rather than solely increasing margins.

• Domestic and international projects maintain a positive outlook, supported by a healthy order book and increased infrastructure spending.