Voltas (VOLTAS) Q2 24/25 earnings summary

Executive summary

• Achieved highest ever half-yearly profit before tax of ₹657 crores and net profit of ₹468 crores for H1 FY25, with 184% year-over-year growth.

• Consolidated total income for H1 FY25 rose 33% year-over-year to ₹7,726 crores; Q2 FY25 income up 15% to ₹2,725 crores.

• Unitary Cooling Products division saw a 56% volume increase over previous lean months, maintaining a 21% market share as of September 2024.

• Voltas Beko JV posted 54% volume growth in H1, with significant market share gains in refrigerators and washing machines.

• Board approved unaudited financial results for the quarter and six months ended 30th September 2024.

Financial highlights

• Q2 FY25 profit before tax surged 142% year-over-year to ₹205 crores; net profit up 272% to ₹133 crores.

• H1 FY25 profit before tax up 128% to ₹657 crores; net profit up 184% to ₹468 crores compared to H1 FY24.

• EPS for H1 FY25 was ₹14.15 (vs. ₹5.02 YoY); Q2 EPS was ₹4.05 (vs. ₹1.11 YoY).

• Cash and cash equivalents at end of H1 FY25 at ₹633 crores, down from ₹816 crores at FY24 end.

• Q2 consolidated income was ₹2,725 crores (+15% YoY); Q2 net profit after tax was ₹133 crores (+269% YoY).

Outlook and guidance

• Management expects continued growth, with festive demand and new product launches supporting momentum.

• Voltas Beko targets EBITDA breakeven in the coming year as market share approaches 8-10% in key categories.

• Q3 is typically a lean season for cooling products, but early festive demand may offset seasonality.

• Unitary Cooling Products segment maintains positive outlook, driven by strong market leadership and robust demand.

• Domestic Projects business expects continued order book expansion, supported by infrastructure spending.