Voltas Q3 FY25 Results & Concall: Strong Growth in Revenue & Profits

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Voltas Q3 FY25 Results and Concall Summary

Voltas Q3 FY25 Results and Concall Summary

Voltas Q3 FY25 Financial Performance

Voltas reported strong financial results for the third quarter of FY25, showcasing significant growth in revenue and profits. The company’s consolidated total income increased by 18% year-on-year (YoY) to ₹3,164 crores, compared to ₹2,684 crores last year.

Profit before tax (PBT) jumped 699% to ₹191 crores, up from ₹24 crores in the same quarter last year.
Net profit stood at ₹131 crores, a notable improvement from a loss of ₹28 crores last year.
Earnings per share (EPS) for Q3 was ₹3.99, up from a negative ₹0.92 last year.
For the first nine months of FY25, total income grew 28% YoY to ₹10,890 crores and PBT increased 172% to ₹848 crores.

Segment-Wise Performance

1. Unitary Cooling Products (UCP)

Q3 revenue grew 20% YoY, while nine-month revenue surged 42% YoY to ₹7,155 crores.
Voltas retained its market leadership in room air conditioners (ACs) with a 20.5% market share.
Strong demand for split and window ACs contributed to growth.
Margins were affected by high commodity prices and currency depreciation (USD-INR).
Investments in BTL advertising and consumer financing schemes boosted sales.

2. Commercial Refrigeration

Growth remained moderate due to reduced customer capital expenditure.
Demand was driven by Visi Coolers and glass top freezers.
Margins were under pressure due to inventory liquidation and a slow factory ramp-up.
New orders are expected to support performance in the coming quarters.

3. Commercial Air Conditioning

Stable performance led by VRF and ducted AC sales.
Higher volumes of margin-accretive products and value engineering initiatives had a positive impact.

4. Electro-Mechanical Projects and Services

Revenue increased to ₹1,190 crores, up from ₹982 crores last year.
The segment, which had a ₹120 crore loss last year, turned profitable with ₹57 crores profit.
Strong project execution and a focus on completion certificates helped improve margins.
Domestic order intake stood at ₹1,438 crores, with a current order book of ₹4,862 crores.

5. Engineering Products and Services

Revenue saw a slight increase to ₹437 crores from ₹431 crores.
Segment results fell from ₹158 crores to ₹121 crores, impacted by job renewal challenges.
Mining and construction showed positive momentum despite challenges.

6. Voltbek Home Appliances

Strong volume growth of 59% in Q3 and 56% over nine months.
Increased market share in washing machines (8.3%) and refrigerators (5.1%).
Focused on achieving EBITDA breakeven through cost control and higher sales.

Future Plans and Investments

Capex Plans

Voltas has allocated ₹400-450 crores for expanding compressor manufacturing and ramping up production at its Chennai factory.
₹250 crores of this investment is designated for compressor manufacturing, pending technology partnerships.

Market Outlook and Guidance

The company expects strong demand in the upcoming summer season, driving sales growth.
Management remains optimistic about all business segments.
Pressures from factory ramp-up delays and inventory liquidation in refrigeration are expected to ease.
UCP segment margins are projected to stay in the high single-digit range.