Voltas shares rallied over 10 per cent intraday on Wednesday after the Tata Group company posted a 22.06 per cent rise in consolidated net profit at Rs 200.47 crore for the fourth quarter ended March 31 as against net profit of Rs 164.23 crore in the January-March quarter a year ago.Voltas shares rallied over 10 per cent on Wednesday after the Tata Group company posted a 22.06 per cent rise in consolidated net profit at Rs 200.47 crore for the fourth quarter ended March 31 as against net profit of Rs 164.23 crore in the January-March quarter a year ago. The share price of the company ended 9.23 per cent up at Rs 447.55. The share price opened at Rs 421.40 and touched a high and low of Rs 451.25 and Rs 421.40, respectively.
The company’s market valuation also jumped Rs 1,250.75 crore to Rs 14,808.75 crore. In terms of volume, 13.20 lakh shares of the company were traded on BSE and over one crore shares changed hands on NSE during the day.
According to Reuters, the company beat analysts estimates. During the March quarter, the total income stood at Rs 2,096.86 crore, registering a growth of 10.20 per cent as compared to Rs 1,902.62 crore of the corresponding quarter a year ago. The total expenses of the company during the period was up 8.98 per cent to Rs 1,847.73 crore as compared to Rs 1,695.47 crore. For the entire 2016-17 fiscal, Voltas net profit stood at Rs 511.42 crore, up 30.09 per cent, from Rs 393.11 crore in the previous fiscal. Voltas’ revenue from operations for the fiscal stood at Rs 6,294.84 crore, up 6.99 per cent, compared to Rs 5,883.37 crore in the previous year. According to Reuters, analysts at Nomura said that sales growth from unitary cooling products such as air conditioners was stronger than expected.
The company on Tuesday also announced that it has agreed to set up a and joint venture company in India with equity capital of $100 million with Turkey’s Ardutch. This marks Voltas foray into consumer durables sector.
While announcing the fourth quarter results, Voltas also informed bourses that its board has recommended a dividend of Rs 3.50 per share on face value of Re 1 per share for the year 2016-17.