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Voltas net profit falls 23.5% to Rs 182.7 crore

However, the start of the heat wave from March onwards led to some recovery in the sales momentum. Consequently, revenue from operations during the quarter remained flat at Rs 2,666.58 crore.

The segment under unitary cooling products for comfort and commercial use reported higher revenue of Rs 1,818 crore versus Rs 1,655 crore in the corresponding quarter last year.
The segment under unitary cooling products for comfort and commercial use reported higher revenue of Rs 1,818 crore versus Rs 1,655 crore in the corresponding quarter last year.

Voltas posted a sharp 23% year-on-year decline in net profit to `183 crore for the fourth quarter ended March 31, 2022 due to muted sales of cooling products, impacted by extended winter and third wave of Covid-19 during the first two months of the quarter.

However, the start of the heat wave from March onwards led to some recovery in the sales momentum. Consequently, revenue from operations during the quarter remained flat at Rs 2,666.58 crore.

The segment under unitary cooling products for comfort and commercial use reported higher revenue of Rs 1,818 crore versus Rs 1,655 crore in the corresponding quarter last year.

The increase in commodity prices/input costs along with a time lag in passing on the cost increase effectively to the sales value chain impacted margins. Consequently, segment Ebitda (earnings before interest, tax, depreciation and amortisation) declined 26.4% y-o-y to Rs 192 crore.

However, the company said that it held on to its market leader position in air conditioners with a market share of 25.4% year-to-date January 2022.

Revenue of electro-mechanical projects and services declined to Rs 692 crore versus Rs 875 crore in Q4FY21 owing to lower carry forward order book. However, a healthy project mix and focus on the certifications and collections resulted in improving the overall margin for the segment. The segment reported a flat y-o-y growth in Ebitda to Rs 48 crore. Carry forward order book of the segment was at Rs 5,360 crore, a y-o-y decline of over 17%.

Engineering products and services reported higher revenue and Ebitda at Rs. 124 crore and Rs 41 crore, respectively due to revival in capital equipment demand and higher after sales services revenue.

For the full year ended March 31, 2022, consolidated net profit for Voltas declined 4.3% to Rs 506 crore compared to last year. The revenue from operations increased 5% to Rs 7,934.45 crore for the year versus FY21.

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