Whirlpool of India’s consolidated profit rose 89.4 per cent to Rs 145.3 crore and revenue from operations rose 22.5 per cent to Rs 2,496.9 crore.
Air conditioner makers have posted high double-digit growth in revenue and several of them saw their profits more than double during the April-June quarter amid higher demand due to the scorching summer.
Companies including Voltas, Blue Star, Whirlpool of India, Johnson Hitachi and Havells, which owns the Lloyds brand, have reported a high growth trajectory in their revenues and profits, led by record sales in the April-June period.
Tata group’s Voltas, a leading player in the room air conditioning segment, reported a more than two-fold increase in consolidated net profit at Rs 335 crore and its operating income rose 46.46 per cent to Rs 4,921 crore.
Voltas also reported achieving the milestone of one million air conditioner units sold in Q1FY25 and its total revenues crossed the Rs 5,000 crore mark during the period.
In the first quarter of this fiscal, Voltas’ revenue from “unitary cooling products for commercial and comfort use” falling under its room air conditioning vertical business rose 51.24 per cent to Rs 3,802.17 crore. Its overall volume grew 67 per cent in the air conditioning segment in the April-June period.
“The unitary cooling products business continued to outperform the market and maintained its growth momentum,” he said, adding: “Voltas remains the market leader in both split and window air conditioners with an exit market share of 21.2 percent as of June 2024.
Blue Star also reported a two-fold rise in consolidated net profit at Rs 168.76 crore, while its revenue from operations rose 28.72 per cent to Rs 2,865.37 crore in the June quarter.
Its revenue from unitary products business, which includes sales of room air conditioners, registered a 44.31 per cent increase to Rs 1,729.52 crore during the period.
“With most parts of the country experiencing extremely high temperatures and a generally harsh summer, the surge in demand led to unprecedented growth in the room air conditioner business,” he said.
During the quarter, demand outpaced the business’s inventory plans, and while the company met most of the excess requirements through increased production, it still missed some opportunities to meet all of the demand that the season offered, Blue Star said.
Similarly, Havells reported a profit of Rs 67.39 crore for the Lloyd’s business, which handles its room air conditioning business. It had reported a loss of Rs 61.48 crore in the same period a year ago.
Revenue from the Lloyd business, a brand that was acquired by Havells in 2017, rose 47.43 per cent to Rs 1,924 crore.
At the earnings call, Havells management said that “the air conditioning business has done a great job” and witnessed many first-time buyers of air conditioners.
“… We believe this could trigger a turning point for the underpenetrated air conditioning industry,” he said.
Whirlpool of India’s consolidated profit rose 89.4 per cent to Rs 145.3 crore and revenue from operations rose 22.5 per cent to Rs 2,496.9 crore.
Its revenue growth was driven by growth in the refrigerator and air conditioner industry, the company said in its earnings statement.
Johnson Controls-Hitachi Air Conditioning India, which sells residential air conditioners under the Hitachi brand, also reported over 76 per cent growth in revenue to Rs 982.29 crore in the June quarter in the “comfort and commercial cooling products” segment.
Consumer Electronics and Home Appliances Manufacturers Association (CEAMA) president Sunil Vachani had earlier said he expects annual sales volumes of room air conditioners to be around 14 million.
First published: August 15, 2024 | 10:06 am IS
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