Tata Group is trying to sell its home appliance brand Voltas Ltd due to challenges in the competitive market. Tata Group is reportedly looking to sell its home appliance brand Voltas Ltd due to challenges in the competitive market. The Tata Group, which holds around 30% stake in the business, is facing challenges in expanding the Voltas business in a competitive market. Voltas Ltd has a market capitalization of Rs 26,936 crore as on november 7. Tata Group's management is currently in discussions about a potential sale. It has not yet decided whether to include its local joint venture with Arcelic AS in the deal, the sources said.
Headquartered in Mumbai, Voltas Limited is a leading home appliance brand that designs, develops, manufactures and markets products including air conditioners, air coolers, refrigerators, washing machines, dishwashers, microwaves, air purifiers, water dispensers. It has a good customer base across India, Middle east, South east Asia and Africa.
Voltas has a tie-up with european consumer durables brand Arcelic and a separate line of home appliances under the brand Voltas Beko in the domestic market. Shares of Voltas Ltd fell at least 2% to close at Rs 814.95 on Tuesday. Last month, Voltas had posted a consolidated net profit of Rs 36 crore for the second quarter ended september 30. The company had posted a net loss of Rs 6 crore in the July-September period last financial year. Voltas Ltd said the air conditioner maker's total revenue rose to Rs 2,364 crore in the second quarter from Rs 1,833 crore in the year-ago period.
The company said its board has approved a proposal to raise up to Rs 500 crore by issuing non-convertible debentures (NCDs) on private placement basis. The company's EBITDA jumped 30.2 per cent to Rs 70.4 crore in the second quarter of this fiscal from Rs 101 crore in the corresponding period of the previous fiscal. BITDA margin stood at 3.1% in the reporting quarter as compared to 5.7% in the previous financial year.
Profile before tax (PBT) stood at Rs 85 crore compared to Rs 13 crore in the same quarter last year. Earnings per share as of september 30, 2023 stood at Rs 1.05 as compared to negative Rs 0.22 last year.
click and follow Indiaherald WhatsApp channel