Voltas shares jump 13% after company reports highest-ever AC sales

The development triggered strong buying action in the stock with more than 65.50 lakh shares trading on the NSE around 12 pm, with the total traded value at Rs 869.94 crore. The stock rallied for the second session in a row.

Voltas registered a significant volume growth of 72% in AC sales during Q4 FY24.

Consistent demand for cooling products during the year, coupled with the company’s strong offline and online distribution network, strongest brand equity, and innovative new launches helped it achieve this feat, the company claimed in a filing.

The stock is trading above its 50-day and 200-day simple moving averages (SMAs) and with the recent rally, the stock is in a strongly overbought zone. The day's RSI and MFI as reported by Trendlyne stood around 74% and 86%, respectively. A number above 70 is considered to be overbought while below 30 is seen to be oversold.

Voltas has given impressive returns of more than 60% over the past 12 months which is an outperformance over Nifty. The latter has given returns of 28% during this period. In 2024, so far its returns are nearly 37% versus 0.67% by the 50-stock index.

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The Indian electrical appliances maker had reported a fall in third-quarter profit hurt by higher costs. The company's consolidated net profit before exceptional items and tax fell 58% from last year to Rs 23.85 crore in the three months to December 31.

Expenses related to raw materials, jobs, and services climbed 55.6%, driving total costs up by about 35%.

Revenue from operations rose 31% to Rs 2,626 crore as warmer-than-usual weather boosted demand for air conditioners.

Voltas' key cooling products segment - which accounts for over half of the company's revenue and makes appliances like purifiers - reported a more than 21% rise in revenue.

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