Tata Group firm Voltas today reported a 42.28 per cent increase in consolidated net profit at Rs 81.56 crore for the December quarter on improved margins, tighter control on overheads and higher income from investments.
The company had a net profit of Rs 57.32 crore in the October-December quarter a year ago, Voltas said in a BSE filing.
However, Voltas' consolidated net sales were down 5.64 per cent to Rs 1,194.17 crore during the quarter hit by demonetisation, as against Rs 1,265.58 crore in the corresponding quarter last fiscal.
Its total expenses were down 8.62 per cent to Rs 1,117.12 crore as against Rs 1,222.57 crore.
"The short term impact of demonetization has weakened consumer and business sentiments. The consolidated gross sales from operations for the quarter ended December 31, 2016 were lower by 6 per cent at Rs 1,194 crore as compared to Rs 1,266 crore in the corresponding quarter last year," the company said.
It further added: "However, profit before tax was significantly higher by 62 per cent at Rs 125 crore as compared to Rs 77 crore last year due to improved margins, tighter control on overheads and higher income from investments."
Revenue from its Electro-mechanical Projects and Services business stood at Rs 702.58 crore during the quarter under review, down 2.89 per cent, as against Rs 723.55 crore in the year-ago period.
Its revenue from Engineering Products and Services segment was down 27.56 per cent to Rs 80.74 crore as against Rs 111.47 crore in the same period a year ago.
Revenue from Unitary Cooling Products for Comfort and Commercial Use business stood at Rs 411.07 crore in the quarter under review, down 4.55 per cent, compared with Rs 430.67 crore in the year-ago period.
"The segment had grown strongly from April 2016 to October 2016 but was negatively impacted after demonetisation. There was a decline in sales by 5 per cent and was Rs 411 crore as compared to Rs 431 crore in last year," Voltas said.
Shares of Voltas today settled at Rs 342.00 on BSE, up 0.71 per cent from previous close.
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