Voltas Limited, the air conditioning and engineering services company of the Tata Group, has posted a significant growth in net profit and net sales in the first half, ended September 2003. 

The company registered a 41 per cent increase in net profit to Rs 1449 lakh in H1 ended September 2003 as against Rs 1029 lakh in the corresponding H1 of the previous year. The company’s net sales rose by 14 per cent to Rs 66870 lakh as against Rs 58787 lakh. The electro-mechanical projects and services segment has been the major contributor to the increase in the net sales. 

The company’s operating profit (profit before tax and extraordinary items) for Q2 ended September 2003 has risen by 181 per cent to Rs 560 lakh from Rs 199 lakh in the corresponding quarter of the previous year.

The company’s net profit was at Rs 430 lakh in Q2 ended September 2003 compared to Rs 752 lakh. 

The company had last year applied to the Bombay High Court for adjusting the balance in deferred revenue expenditure (DRE) against the share premium account. Arising out of the Bombay High Court approval in September 2002, the company had during the quarter ended September 2002, reversed the amortisation of VRS charge (DRE) of Rs 887 lakh resulting in higher extraordinary income / profit before tax for the said quarter. Excluding this onetime credit, the extraordinary income for the quarter ended September 2002 would be Rs155 lakh and the profit before tax, Rs 354 lakh, as against Rs 641 lakh during the current quarter September 2003, which reflects an increase of 81 per cent.

During the quarter under review, the company has achieved a landmark settlement with its union whereby the pending disputes between the union and the company have been resolved and both the parties have agreed to withdraw all pending cases from the court.