Voltas' Q3 net sales / income from operations up by 50 per cent
January 31, 2006

The board of directors of Voltas, the air-conditioning and engineering services company of the Tata Group, today announced the unaudited financial results for the quarter ended December 31, 2005.

Highlights for quarter ended December 31, 2005

• Net sales / income from operations at Rs 447.09 crore up by 50 per cent year-on-year
• Operating profit at Rs 26.39 crore up by 255 per cent year-on-year
• Profit after tax at Rs11.36 crore up by 49 per cent year-on-year
• EPS at Rs 3.43.

Quarter ended December, 2005
The company's net sales / income from operations rose by 50 per cent to Rs 447.09 crore in the quarter ended December 31, 2005 as compared to Rs 298.60 crore in the same period last year. Operating profit (profit before tax and exceptional items) rose by 255 per cent to Rs 26.39 crore as against Rs 7.43 crore in the same period last year. Profit after tax rose by 49 per cent to Rs 11.36 crore as against Rs 7.60 crore in the same period last year.

The company announced a VRS package for 677 employees at its Hyderabad unit at a cost of Rs 48.60 crore, which has resulted in reversal of impairment of fixed assets of Rs 27.81 crore. Both these items are shown under exceptional income / (expenses) – net.

Announcing the results, M M Miyajiwala, executive vice president (finance) and CFO, said that the growth was driven by stellar performance of the engineering products and services and the electro-mechanical projects and services segments, backed by steady growth in room air-conditioner business. He added that the company is confident that going forward, these businesses will keep the company on a strong growth trajectory.

Mr Miyajiwala further added, "Our vast experience and capabilities to deliver desired quality and services to clients is driving the growth in the electro-mechanical projects and services business, which grew by 61 per cent. The engineering products and services business grew by 80 per cent. Despite steep competition our room air-conditioner business has achieved remarkable growth of 41 per cent."

Nine months ended December 31, 2005
The company's net sales / income from operations grew by 46 per cent to Rs 1,378.71 crore as against Rs 941.73 crore in the same period last year. Operating profit rose by 165 per cent to Rs 81.16 crore as against Rs 30.65 crore during the same period last year. Exceptional expenses (net) stood at Rs 26.59 crores as against exceptional income (net) of Rs 3.93 crore during the same period last year. Profit after tax rose by 70 per cent to Rs 46.76 crore as compared to Rs 27.58 crore in the same period last year.