Voltas shares hits new 52-week high, locked in upper circuit on record AC sales

Shares of Voltas hit their upper circuit of 10 percent and clocked a fresh 52-week high in early trade on April 8, after the AC maker announced that it sold 2 million units in FY24.

Voltas sold 2 million AC units during the fiscal year 2023-24, which is the highest ever sale of ACs by any brand in a financial year in India. The sales indicated a volume growth of 35 percent in the AC segment, the company said on a business update.

At 9.30 am, Voltas was quoting Rs 1,355.5 apiece, up 10 percent on the NSE compared to the previous session's closing price.

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Voltas also registered volume growth in other cooling products, including air cooler and commercial refrigeration products. Voltas Beko, the home appliances brand, saw a volume growth of 52 percent in Q4FY24. It sold almost 2 million home appliances, including refrigerators and washing machines, during the financial year. Overall, Voltas sold almost 5 million consumer products.

“We are delighted to achieve this extraordinary milestone of achieving 2 million ACs in FY 2023 – 24, which is an industry first. We would like to reiterate that none of our competitors within the category are anywhere close to where we stand today," said Pradeep Bakshi, MD & CEO, Voltas.

On April 2, stock prices of consumer durables companies such as Voltas and Havells India surged after the Met Office issued warnings of a heatwave as a result of extreme weather conditions.

However, in a report, ICICI Securities debunked the claim that the heatwave will have any impact on the revenue growth of summer products.

"While the narrative of ‘heatwaves result in higher growth of summer products (fans, air coolers, air conditioners and refrigerators)’ is popular, we believe historical data does not support this," the broking firm said in a report.

Over the past six months, Voltas shares have surged almost 60 percent in trade. In comparison, the domestic benchmark, Nifty 50 has risen around 15 percent during the same time period.

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