Voltas registers significant growth in operational performance
June 27, 2005

The board of directors of Voltas, the air conditioning and engineering services company of the Tata Group, have today announced the unaudited financial results and segment report for the quarter ended June 30, 2005.

Continuing with its past trend, the company has posted a significant increase in operational performance on back of strong growth in sales.

The company's operating profit (profit before tax and exceptional items) rose by 84.5 per cent to Rs 25.6 crore as against Rs 13.9 crore in the corresponding quarter of the previous year. net profit increased by 14.8 per cent to Rs 16.6 crore as against Rs 14.4 crore over the corresponding quarter of the previous year. The company’s net profit growth is subdued due to VRS charge of Rs. 11.3 crores, incurred during the quarter under review. The company follows the practice of charging off the full VRS cost when incurred.

Net sales for the quarter rose by 31.7 per cent to Rs 455.5 crore as against Rs 345.8 crore in the corresponding quarter of the previous year. The company’s performance was driven by strong growth in electro-mechanical projects and services segment (61.2 per cent); the engineering agency and services segment (63.9 per cent) and unitary cooling products for comfort and commercial use segment (8.7 per cent). Within the unitary cooling products for comfort and commercial use segment, the cooling appliance business has registered a volume growth of about 41per cent.