Voltas Shares Slump as Profit Declines Amid Weather Impact

Shares of Voltas Ltd dropped significantly after the company reported a 58% decline in consolidated net profit for the June quarter due to unseasonal rains and early monsoon, affecting the cooling business. Revenue also fell by over 20%, highlighting the impact of weather on its operations.

Voltas Ltd witnessed a notable slump in its market shares on Monday, as the company's consolidated net profit plummeted by 58% for the June quarter. The decline, attributed to unseasonal weather patterns and an early monsoon onset, saw the firm's shares drop nearly 5% on the BSE.

The Tata Group company reported earnings of Rs 140.61 crore for the quarter, a significant fall from the Rs 335 crore net profit recorded in the same period last year. Voltas' revenue also took a hit, decreasing by over 20% to Rs 3,912.29 crore, further exacerbating the financial downturn caused by weather anomalies.

The adverse weather conditions, characterized by delayed summer onset and abrupt end due to monsoons, severely impacted the demand for cooling products, notably air conditioners. This market shift has raised concerns regarding Voltas' future performance amidst unpredictable climatic scenarios.

(With inputs from agencies.)