Stock rises 1% as Voltas refutes report on sale plans for home appliances business

8 Nov 2023 , 11:05 AM

On November 8, the stock of Voltas increased by 1.01% to Rs 821.60 at open, following the company’s clarification the day before that it had no intention of selling its home appliance division. At the close of business on November 7, the stock was down almost 2%, at Rs 813.80.

Voltas said that the news of the planned sale was ‘totally incorrect and blatantly false, with no factual basis whatsoever’ in a statement that was issued to both exchanges. The corporation went on to say that they were dedicated to the expansion and improvement of the home appliance industry.

Due to difficulties growing the company in a cutthroat industry, parent company Tata Group is thinking of selling Voltas Ltd.’s home appliance division, according to a story published by Bloomberg on November 7.

After posting a net loss of Rs 6 crore in Q2FY23, Voltas posted a net profit of Rs 35.6 crore in Q2FY24. Additionally, total revenue increased by 29.7% year over year to Rs 2,292.8 crore in the quarter that ended in September 2023. The earnings before interest, taxes, depreciation, and amortisation (EBITDA) margin for the same period was 3.1%, down from 5.7% in the prior fiscal year.

A global maker of cooling equipment, Voltas from the Tata Group is present in India, the Middle East, Southeast Asia, and Africa. Their equipment includes air conditioners, water coolers, HVAC systems, and commercial refrigeration units.

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