Q1 2027 Voltas Ltd Earnings Call Transcript
Key Points
- Voltas Ltd (BOM:500575) achieved a record 17.3% secondary market share in room air conditioning, widening its lead over the nearest competitor by 4 percentage points.
- The company sold 1 million RACs in just 81 days, demonstrating strong brand strength and execution capabilities.
- Segment A delivered strong growth of 33%, with RAC volumes growing 45% year-on-year, significantly outperforming the industry.
- Voltas Ltd (BOM:500575) entered into a binding term sheet for a 50:50 JV with Attenburg Innovation to manufacture high-efficiency RAC compressors in India, enhancing supply chain security.
- VoltBek recorded its highest-ever quarterly sales in both value and volume, achieving market shares of 9.4% in washing machines and 7.4% in refrigerators.
- The company maintained a strong liquidity position and well-controlled working capital profile, supporting future investments.
- Voltas Ltd (BOM:500575) faced significant cost inflation from commodity price increases, rupee depreciation, and higher ocean freight, which dampened margin expansion.
- The company had to pass on price increases of 10-12% to consumers, which could impact demand in the near term.
- VoltBek's EBITDA breakeven has been pushed out by a few quarters due to the West Asia crisis and commodity inflation.
- The international projects business saw new order booking delays due to the Middle East conflict, impacting revenue visibility.
- Commercial refrigeration and air coolers recorded muted performance due to slower market uptake following price increases.
- The company's EBIT margin in the unitary cooling products segment was only 5.3%, which is below historical highs and may take time to recover.
Ladies and gentlemen, good day, and welcome to Q1 FY27 earnings conference Call of Voltas India Limited, hosted by Phillip Capital India Private Limited. (Operator Instructions). Please note that this conference is being recorded.
I will now hand the conference over to Ms. Natasha Jain from Phillip Capital India Private Limited. Thank you, and over to you, ma'am.
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Thank you, Muskan. Good evening, everyone. I'm Natasha Jain on behalf of Phillip Capital. Welcome all of you to the first-quarter FY27 earnings conference Call of Voltas India Limited. From the management have Mr. Mukundan Menon, Managing Director; Mr. K. V. Sridhar, Chief Financial Officer; Mr. Nikhil R Chandarana, Head, Corporate Finance; Ms. Suman Tripati, Head FD&A and Mr. Manish Somani, Head Finance Controlling. I request the management to give their opening remarks, post which we shall open the floor for Q&A. Thank you, and over to you, sir.
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