Home AC sales are booming but Voltas profits still took a hit and the street's dumping its shares

Voltas shares touched an intraday low of Rs 1045, down 10 percent on BSE today. (Source: BSE)

Voltas reported revenue growth of 1 percent year-on-year (YoY) to Rs 2,667 crore led by 13 percent YoY growth in the revenue of the unitary cooling products (UCP) division.

However, sales from the electro-mechanical projects and services segment declined.

"The extended winter coupled with the spread of the third wave of mutant (Omicron) virus during January/February 2022 affected the trade and consumer sentiments, resulting in lower primary offtake of cooling products by channel partners. However, the hot weather turned the market outlook in March 2022 resulting in partial sales recovery for the quarter," said Voltas.

The overall operating margin of the company declined by 268 basis points on-year to 9.8 percent. This was largely due to higher raw material costs and delay in price hike, said ICICI Securities.

All three business segments reported a fall in profitability in Q4FY22, the brokerage firm added.