BENGALURU (Reuters) - Indian air conditioner and refrigerator maker Voltas reported a smaller-than-expected fourth-quarter profit on Tuesday, as mounting expenses overshadowed steady demand.


Scorching summers in the Indian subcontinent have pushed temperatures to record highs, boosting the need for home appliances such as air conditioners and coolers.

However, consumer goods makers have had to offer deals and discounts to lure inflation stricken consumers, hurting margins.

Delayed stocking of air conditioners due to an extended winter in parts of the country also weighed.

Moreover, while prices of essential materials such as copper and aluminium have declined from their post-COVID highs, they remain elevated compared with pre-pandemic levels.

Rival Blue Star posted a more than 46% jump in fourth-quarter profit buoyed by heavy demand for its ACs as consumers prepared for a hotter-than-usual summer.


Mumbai-based Voltas' consolidated net profit fell 19% to 1.16 billion rupees (about $14 million) for the three months ended March 31, missing analysts' expectations of 2.13 billion rupees.

The company's revenue from operations rose over 42% to 42.03 billion rupees, beating analysts' expectations of 38.13 billion rupees, while total expenses surged nearly 47% from a year earlier.

Revenue from Voltas' unitary cooling products segments, which includes air conditioners, air coolers, and commercial refrigeration, grew 44% year-on-year.

($1 = 83.4919 Indian rupees)

(Reporting by Navamya Ganesh Acharya and Ashna Teresa Britto in Bengaluru; Editing by Mrigank Dhaniwala)