Voltas Limited has termed the news of Tata Group selling Voltas Home Appliance Business as false. Voltas said in the statement, 'This is in reference to the news published on Bloomberg.com this afternoon 'Tata Considering Sale of Voltas Home Appliances Business', which was also published by some other publications and channels without first ascertaining the facts from the company officials.
In this matter we would like to clearly say that this news is completely wrong and clearly false, which has no factual basis whatsoever. Therefore the management denies any such development.
Earlier in a Bloomberg report, quoting sources, it was claimed that Tata Group is considering selling the home appliances business of Voltas Limited. The source had said that Tata Group feels that this is a very competitive market and in the coming days it may face difficulties in expanding its business.
Today Voltas shares have seen a decline of 1.70%. It closed at Rs 813.80 with a decline of Rs 14.10 (-1.70%). Its shares have seen a decline of 22.80 (-2.73%) in the last one year. A year ago the company's share was at Rs 836.60. Whereas on October 14, 2021, the company's shares were at Rs 1324. That is, there has been a decline of more than 36% from now till now.
Recently, the results of the second quarter (September quarter) of Voltas financial year 2023-24 were released. According to this, the company's adjusted profit during this period has declined by 64.4% to Rs 35.6 crore compared to the same quarter last year. The company's profit in the second quarter of last year was Rs 100 crore. Whereas the income declined by 29.7% to Rs 2293 crore.
Voltas was started in 1954. It makes many products including air conditioners, water coolers and fridges. The company operates in India, the Middle East, Southeast Asia and Africa. According to the company's September quarter results, its market share in India for refrigerators is 3.3% and for washing machines is 5.4%.
According to the company's website, Voltas is on top in terms of AC sales in India. According to the information available on BSE, the market cap of the company as on November 7 is around Rs 27 thousand crores.