Voltas Faces Chilling Setback: Profits Plunge Amid Unseasonal Weather

Voltas Ltd, a major player in the air-conditioning and engineering services sector, announced a steep decline in profits for the June quarter, attributed to unseasonal weather. The company's net profit plunged by 58% to Rs 140.61 crore, adversely affected by early monsoons and unpredictable weather patterns.

The Tata Group firm witnessed a 20.22% drop in revenue, bringing it down to Rs 3,912.29 crore compared to the previous year's Rs 4,903.91 crore during the same period. Voltas cited the delayed onset of summer and mild temperatures as factors leading to a decreased demand for cooling products, particularly air conditioners.

To counteract the diminished sales, Voltas heightened promotional activities to boost secondary sales, but this applied pressure on profit margins. Despite these challenges, Voltas reported continued stability in its domestic and international project executions, maintaining operational efficiency through strategic cost controls.

(With inputs from agencies.)