Voltas trades with traction on the bourses

Voltas is currently trading at Rs. 101.60, up by 2.45 points or 2.47% from its previous closing of Rs. 99.15 on the BSE.

The scrip opened at Rs. 98.90 and has touched a high and low of Rs. 102.25 and Rs. 97.20 respectively. So far 240948 shares were traded on the counter.

The BSE group 'B' stock of face value Rs. 1 has touched a 52 week high of Rs. 124.50 on 10-Dec-2013 and a 52 week low of Rs. 62.70 on 04-Sep-2013.

Last one week high and low of the scrip stood at Rs. 110.00 and Rs. 97.05 respectively. The current market cap of the company is Rs. 3371.72 crore.

The promoters holding in the company stood at 30.30% while Institutions and Non-Institutions held 44.94% and 24.76% respectively.

Voltas may have to go in for capacity expansion by early next year either by setting up new lines in the existing facility or a green field unit as its current production facility is running to its capacity. They are yet to take a concrete decision on this. With more than seven lakh units sold last year, the market leader commands over 20 per cent share of the 3.5-million-unit room air-conditioner market in the country. For the current year, it has launched 68 new models of split air-conditioner, including five models in the ‘inverter’ range.

Besides, it is also in the process of expanding its network of channel partners and retail footprint across the country. With all this, they hope to sell more than a million units in 2014. Till the company finalises its plans on expansion, it may opt to outsource some of its products as a temporary arrangement.

The company, part of the Tata group, pioneered the concept of energy-efficiency in air-conditioners. It is the market leader in 5-star labelled air-conditioner segment too. Over 30 per cent of our total AC business comes from the 5-star category, while the industry average is 15 per cent. Voltas will focus on its inverter models this year. The company has made a new television commercial created by Ogilvy & Mather to promote the new range, and Rs 60 crore has been set aside for advertising.

In addition to its unitary products business that includes room air-conditioners, water dispensers and commercial refrigeration products, Voltas has another division that offers engineering solutions to a wide spectrum of industries such as heating, ventilation, electro-mechanical projects, textile machinery, mining and construction equipment, water management and building management systems. It recently bagged the mechanical, electrical and plumbing contract from Chennai Metro Rail.