"Challenges in Competitive Market Lead Tata Group to Consider Sale of Voltas Home Appliance Brand, Report Says"
Tata Group is reportedly exploring the sale of its home appliance brand, Voltas Ltd, due to the competitive market challenges it faces. According to a Bloomberg News report, the Indian conglomerate is currently in discussions with potential market partners regarding this potential deal. The report also mentions that the fate of their joint venture with Arcelik AS remains uncertain.
Voltas Limited, headquartered in Mumbai, is a prominent home appliances brand engaged in the design, development, manufacturing, and sale of products such as air conditioners, air coolers, refrigerators, washing machines, dishwashers, microwaves, air purifiers, and water dispensers. The company has a significant presence in India, the Middle East, Southeast Asia, and Africa.
In the last month, Voltas reported a consolidated net profit of Rs 36 crore for the second quarter ending on September 30. This marks a significant improvement from the net loss of Rs 6 crore reported in the same period the previous fiscal year. The company's total income for the second quarter increased to Rs 2,364 crore compared to Rs 1,833 crore in the same period the previous year, as reported by Voltas Ltd in a regulatory filing.
The company also announced that its board has approved a proposal to raise up to Rs 500 crore through the issuance of rated, listed, unsecured, redeemable non-convertible debentures (NCDs) on a private placement basis.
In terms of financial performance, Voltas saw a notable 30.2% increase in EBITDA, which reached Rs 70.4 crore in the second quarter of this fiscal year, up from Rs 101 crore in the corresponding period of the previous fiscal year. The EBITDA margin for the reporting quarter stood at 3.1%, compared to 5.7% in the corresponding period of the previous fiscal year.
Profits before tax (PBT) amounted to Rs 85 crore, a significant improvement from Rs 13 crore in the corresponding quarter of the previous year. Earnings per Share as of September 30, 2023, stood at Rs 1.05, a substantial increase from the negative figure of Rs 0.22 reported the previous year.
