Voltas Q2 sales up by 34%; net profit up by 114%
October 25, 2007

The board of directors of Voltas, a global air conditioning and engineering services provider of the Tata Group, have today announced the unaudited financial results, including the segment report, for the quarter and half year ended September 30, 2007.

Highlights

• Sales / income from operations at Rs722.12 crore, up by 34 per cent
• Operating pofit at Rs69.57 crores up by 124 per cent
• Profit after tx at Rs53.58 crore, up by 114 per cent
• EPS at Rs1.62 on fce vlue of Re1 (not annualised)
• Quarter ended September 30, 2007

The cmpany’s sales / income from operations rose by 34 per cent to Rs722.12 crore, as against Rs540.65 crore in the same period last year. Operating profit (profit before tax and exceptional items) rose by 124 per cent to Rs69.57 crore as against Rs31.02 crore in the same period last year. Profit after tax rose by 114 per cent to Rs53.58 crore as compared to Rs25 crore in the same period last year.

Announcing the results, MM Miyajiwala, executive vice president, finance and CFO of the company said, "Voltas remains on its growth trajectory, continuing to successfully leverage its capabilities and experience in many of today's markets of high investment and growth. The strong growth in the order book position is one of the results. So is the fact that half-yearly profits before tax have exceeded the last full year's operating profits."

The company’s Electro-mechanical projects and services segment's revenues increased by 34 per cent. The order book of this segment stands at Rs2,695 crore as on September 30, 2007, representing a growth of 34 per cent over the corresponding period in the previous year.

The engineering products and services segment registered a revenue growth of 35 per cent. Textile machinery business achieved 18 per cent growth in sales, while materials handling business achieved 20 per cent growth in sales. Mining and construction equipment business achieved 60 per cent growth in sales.

The unitary cooling products for comfort and commercial use segment registered a revenue growth of 40 per cent, with 41 per cent volume growth in air conditioners, which continues to be driven by the popularity of India's very first full range of energy efficient air conditioners. Commercial coolers grew by 51 per cent in volume.

Six months ended September 30, 2007
The company’s sales / income from operations grew by 36 per cent to Rs1,555.81 crore as against Rs1,139.94 crore in the corresponding period last year. Operating profit (profit before tax and exceptional items) rose by 131 per cent to Rs147.73 crore as against Rs63.82 crore in the same period last year. Profit after Tax rose by 126 per cent to Rs105.74 crore compared to Rs46.75 crore in the same period last year. Earnings per share (EPS) was Rs3.20 on face value of Re1 per share (not annualised).