The stock of Voltas fell by as much as 12% to hit a low of Rs 1,296 on the BSE on Thursday after the company came out with third quarter earning figures that missed the market expectations.
The company also reported a loss reversal in the year under consideration due to increased demand for home appliances during the festive season.
The firm that sells air conditioners and coolers reported a consolidated net income of Rs 132 crore for the three months to December 31, 2012, from a net loss of Rs 30.41 crore a year ago.
The leading Indian manufacturer and provider of electronic and electrical appliances, Voltas, has reported that its Q3 FY22 revenue from the operations section has increased by 18% YoY to Rs 3087 crore from Rs 2684 crore in Q3 FY24.
The stock of Voltas fell by as much as 12% to hit a low of Rs 1,296 on the BSE on Thursday after the company came out with third-quarter earning figures that missed market expectations. The company also reported a loss reversal in the year under consideration due to increased demand for home appliances during the festive season.
The stock prices of the company have increased by 41.69% in the last year and have exceeded the sector growth by 6.9%. However, the stock has generated a 108% return over the last five years.
As stated by Trendlyne, Voltas has indeed performed better than its sector, Nifty50, and Sensex, in one-year returns but underperformed its industry.
Voltas Ltd. was incorporated in the year 1954, and it belongs to the large-cap category with a market capitalization of Rs 48775.72 crore, and it operates in the consumer durables industry.
The company is a subsidiary of the Tata group and, apart from room air conditioners, manufactures and sells air coolers, air purifiers, water dispensers, water coolers, Commercial refrigeration, and Commercial air conditioning.
Market Reaction
Despite reporting a return to profitability, Voltas shares experienced significant volatility following the earnings announcement. On January 30, 2025, shares plummeted by approximately 12% at one point during trading hours before stabilizing around ₹1,317 on the National Stock Exchange (NSE).
This reaction underscores investor sentiment regarding missed profit expectations and concerns over margins despite strong revenue growth.