off-the-wire

India's Voltas Q4 profit slumps on provisions over contract terminations

Kitco Media
By Reuters
Published:
Updated:
Reuters
BENGALURU, April 26 (Reuters) - India's Voltas Ltd posted a 21.2% drop in fourth-quarter profit, as the air conditioner and refrigerator maker remained under pressure from the termination of some overseas contracts. Consolidated net profit fell to 1.44 billion rupees ($17.62 million) in the quarter ended March 31, compared with 1.83 billion rupees a year earlier, the company said.


Voltas, which competes with Blue Star , made provisions of 2.44 billion rupees during the quarter due to the termination of some contracts in Dubai and Qatar last year.


The contract terminations have been a drag on Voltas for three straight quarters. Revenue from operations rose nearly 10.9% to 29.57 billion rupees for the three months ended March 31, from 26.67 billion rupees a year earlier.


Its biggest segment, unitary cooling products, reported a 12.7% rise in revenue.


"The unitary cooling products business has relatively performed better amid the lower consumer sentiment towards discretionary spend and incessant rains in March 2023," Voltas said in a statement. ($1 = 81.7400 Indian rupees) (Reporting by Anisha Ajith in Bengaluru; Editing by Sriraj Kalluvila)

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