Voltas Q3 profit drops 58% as expenses rise

Bengaluru: Indian electrical appliances maker Voltas reported a fall in third-quarter profit on Tuesday, hurt by higher costs.

The Tata Group-owned company's consolidated profit before exceptional items and tax fell 58% from last year to ₹238.5 million ($2.87 million) in the three months to Dec. 31.

Expenses related to raw materials, jobs, and services climbed 55.6%, driving total costs up by about 35%.

Revenue from operations rose 31% to ₹26.26 billion as warmer-than-usual weather boosted demand for air conditioners.

Voltas' key cooling products segment - which accounts for over half of the company's revenue and makes appliances like purifiers - reported a more-than-21% rise in revenue.

Rivals Blue Star reported a jump in third-quarter profit while Havells India reported a marginal growth in quarterly profit.

In the December-2022 quarter, Voltas had set aside ₹1.37 billion for cancellation of contracts and encashment of a bank guarantee, leading to a net loss of ₹1.10 billion.

The company made a net loss of ₹304.1 million in the December-2023 quarter.