Voltas Limited
Voltas is engaged in the business of air conditioning, refrigeration, electro – mechanical projects as an EPC contractor both in domestic and international geographies and engineering product services for mining, water management and treatment, construction equipments and textile industry. Voltas was created 6 decades ago when Tata Sons joined hands with a swiss company Volkart Brothers.
Products Offered
Universal MEP Projects & Engineering Services Limited (UMPESL) Offerings – MEP,HVAC, Water Infrastructure, Electrical & Solar Projects, O & M.
Textile Machinery Division(TMD) Offerings – Capital Machinery, Accessories, Allied Machinery, After-sales Services.
Mining and Construction Equipment (M&CE) Offerings – O & M, Crushing & Screening Machinery. M&CE has grown its business across India.
Shareholding Pattern
-PUBLIC GROUP
-PROMOTER GROUP
Financial Summary
| Particulars | March 2022 | March 2023 | March 2024 |
| Sales | 7,934 | 9,499 | 12,481 |
| Sales Growth % | 5.01% | 19.72% | 31.40% |
| Expenses | 7,362 | 9,045 | 12,145 |
| Operating Profit | 572 | 454 | 336 |
| OPM % | 7% | 5% | 3% |
| Net Profit | 506 | 136 | 248 |
| EPS in Rs | 15.23 | 4.08 | 7.62 |
Synopsis of Financials
- Q2 FY25 results show consolidated total income of ₹2,725 crores, up 15% YoY.
- Profit before tax surged by 142% to ₹205 crores; net profit after tax rose to ₹133 crores from ₹36 crores YoY.
- For H1 FY25, total income increased by 33% to ₹7,726 crores; net profit reached ₹468 crores, marking the highest half-yearly profit in the company’s history.
- Earnings per share for H1 FY25 was ₹14.15 compared to ₹5.02 in the same period last year.
Final Outlook
Voltas strategically aligns with government initiatives like ‘Make in India’ (for Room Air Conditioners), to seize growth opportunities. Recent investments in expanding greenfield and brownfield capacities for key product categories like air conditioners and commercial refrigerators, underscore the Company’s proactive stance. Notably, capacity augmentation by 1 million units in Tamil Nadu and 2,50,000 Commercial Refrigeration units in Gujarat represents a significant capital expenditure ranging between ` 550-650 crores. In the journey towards self-sufficiency, Voltas aims to 100% backward integration of its selected RAC components. Further, Voltas continued to explore opportunities to manufacture most of the RAC components in-house.
Voltas is focused on expanding its product portfolio, particularly in commercial refrigeration, through collaborations like the technical license agreement with Vestfrost Solutions, Denmark. The stock’s recent surge of over 120% in the past year reflects investor confidence, though it’s worth noting that Voltas is trading at a relatively high price-to-earnings (P/E) ratio, which some may consider expensive.
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