Voltas Limited, the major air-conditioning and engineering services company of the Tata Group, has registered  turnover growth of 8.5% to Rs. 853.7 crores for the year ended 31 March 2001 as compared to Rs. 786.4 crores for the previous year.

The continued restructuring process, coupled with substantial reduction in interest and costs, has resulted in the company achieving 149% increase in its profits before tax and extraordinary items of Rs. 17.2 crores as against Rs. 6.9 crores for the previous year.

However, because of much higher amortization of VRS costs of Rs. 22.7 crores and provision made for diminution in value of investments of Rs. 14.5 crores, the net profit after tax for the year is Rs. 5.6 crores as against Rs. 5.5 crores for the previous year.

These results have been achieved despite adverse market conditions in certain capital goods segments. Many of the company’s core businesses such as air-conditioning and refrigeration, textile machinery, mining and construction equipment and pumps and projects, have been able to achieve their planned levels of performance.

The increase in cooling appliances (room air-conditioners) business is almost 30%, which is higher than the industry growth of 20%. However, due to intense competition and low realisations in the cooling appliance segment, margins are slender.

The board of directors has recommended a dividend of 12%, same as that of the previous year.