Voltas (VOLTAS) Q2 24/25 earnings summary

Executive summary

• Achieved record half-yearly profit before tax of ₹657 crores and net profit of ₹468 crores for H1 FY25, with 184% year-over-year growth, driven by strong air conditioner and home appliance sales despite a traditionally lean season and challenging weather conditions.

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

• Maintained leadership in the Unitary Cooling Products segment with a 21% market share as of September 2024.

• Voltas Beko joint venture saw significant volume and market share gains in washing machines and refrigerators, with 54% volume growth in H1 FY25.

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

Financial highlights

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

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

• Basic and diluted EPS for H1 FY25 at ₹14.15, up from ₹5.02 in H1 FY24.

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

• Consolidated total income for H1 FY25 rose 33% year-over-year to ₹7,726 crores.

Outlook and guidance

• Management expects continued growth, with EBITDA breakeven for Voltas Beko likely within the year as market share targets are met.

• 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.

• Q3 is expected to be seasonally lean for cooling products, but festive demand may provide a boost.

• Inflation, commodity prices, and currency volatility remain key watch factors for the coming quarters.