Voltas Q4 Results: Consolidated Net Profit Dips 19% to Rs 116.44 Crore

Voltas released its financial results for the fourth quarter of fiscal year 2023-24 (Q4 FY24) on May 7. It reported a 19 percent decline in consolidated net profit, which stood at Rs 116.44 crore compared to Rs 143.92 crore in the same period the previous year. On the National Stock Exchange, the company’s stock was trading at Rs 1,312.20, down Rs 77 or 5.54 percent. It touched an intraday high of Rs 1,329.45 and an intraday low of Rs 1,262.

Despite the decline in net profit, Voltas observed a notable increase in revenue from operations during the fourth quarter of FY24, reporting a growth of 42 percent to Rs 4,203 crore from Rs 2,957 crore in the corresponding period last year. Moreover, the company’s board of directors proposed a dividend of 550 percent at Rs 5 per share with a face value of Re 1 per share for FY24, pending approval from shareholders.

Voltas officially stated in a regulatory filing to the stock exchanges, “The directors have recommended a dividend of Rs 5 per share on the face value of Re 1 per share (550 percent) for the year 2023-24 which shall be paid on or after fifth day from conclusion of 70th Annual General Meeting, subject to the approval of shareholders of the company.”

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The decrease in net profit for the quarter was attributed to higher expenses, as the total expenses surged to Rs 4,044.90 crore compared to Rs 2,761.45 crore in the same quarter of the previous year.

In terms of business segments, the unitary cooling products division witnessed a remarkable 44 percent growth in revenue, reaching Rs 2,955 crore in the March quarter as opposed to Rs 2,049 crore in the corresponding period of the previous fiscal year. This growth was attributed to Voltas’ strategic approach to enhancing its product mix. Additionally, the engineering products and services division recorded a revenue of Rs 156 crore, up from Rs 142 crore in the previous year’s comparative period.

For the full fiscal year ending March 31, 2024, Voltas reported a consolidated net profit of Rs 248.11 crore, showing an increase from Rs 136.22 crore in the preceding year. The consolidated revenue from operations for FY24 amounted to Rs 12,481.21 crore, a significant rise from Rs 9,498.77 crore in FY23.

Voltas’ performance in Q4FY24 reflects a mixed bag of results, with a decline in net profit offset by substantial revenue growth. The company’s strategic initiatives in enhancing its product mix and expanding its business segments have evidently contributed to its overall revenue growth. Additionally, the proposed dividend payout indicates management’s confidence in the company’s financial health and long-term prospects, subject to approval from shareholders.

Source: Mint

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