Voltas Shares Plummet Over Weak Q4 Results

Voltas Shares Plummet Over Weak Q4 Results/Mint

VoM News Desk | May 8, 2024 | 01:40 PM IST | Breaking News | Follow on Google News

Voltas Shares Plummet Over Weak Q4 Results

Voltas Shares Plummet Over Weak Q4 Results

Key Highlights:

1. Voltas shares drop over 9% in intra-day trading due to disappointing Q4FY24 results.
2. Consolidated net profit declines by 22.75%, attributed to higher expenses.
3. Despite the fall, Voltas remains significantly above its 52-week low but down from recent highs.

Voltas witnessed a sharp decline in its share value by over 9% in intra-day trading today following the release of its weak results for the quarter ended March 2024 (Q4FY24). This marks the third consecutive session of decline for the firm, with a total loss exceeding 15% during this period.

The firm reported a significant 22.75% drop in its consolidated net profit for Q4FY24, amounting to ₹110.64 crore compared to ₹143.23 crore in the same period last year. This decline was primarily due to higher expenses. However, its revenue from operations saw a notable 42% increase, reaching ₹4,203 crore from ₹2,957 crore in the previous year.

Despite today’s decline, Voltas shares remain considerably above their 52-week low of ₹745, recorded on July 14, 2023, but have retreated nearly 16% from their recent peak of ₹1,500 on May 2, 2024.

Looking ahead, Voltas’ board of directors has proposed a dividend of 550% at ₹5 per share for FY24, subject to shareholder approval. Despite the challenging Q4 results, brokerage firms have varying outlooks on Voltas’ future performance. Nomura maintains a ‘buy’ rating with a target price of ₹1,450 per share, while Morgan Stanley and Macquarie adopt a more cautious approach, with target prices suggesting potential downside.

source: MINT

VoM News Desk

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