Tata Group looking at selling off Voltas home appliance business, talks on: Report

Tata Group is reportedly trying to sell its home appliance brand Voltas Ltd. due to challenges in the competitive market. According to a report in Bloomberg News, the Indian conglomerate is currently discussing the deal with other market players. It added that the future of their joint venture with Arcelik AS is also not clear yet.

Headquartered in Mumbai, Voltas Limited is a major home appliances brand that designs, develops, manufactures and sells products including air conditioners, air coolers, refrigerators, washing machines, dishwashers, microwaves, air purifiers, water dispensers. It has a presence across India, the Middle East, Southeast Asia and Africa.

Voltas has a tie-up with Europe’s consumer durables brand Arcelik and has a separate line of home appliances under the brand Voltas Beko in the domestic market.

Shares of Voltas Ltd were trading at Rs 814.95, down by 1.50 per cent, at 2.40 PM on Tuesday.

Last month, Voltas reported a consolidated net profit of Rs 36 crore for the second quarter ended September 30. The company had reported a net loss of Rs 6 crore in the July-September period of the last fiscal. The airconditioner maker's total income increased to Rs 2,364 crore for the second quarter against Rs 1,833 crore in the year-ago period, Voltas Ltd said in a regulatory filing.

The company said its board has approved a proposal to raise up to Rs 500 crore through the issuance of rated, listed, unsecured, redeemable non-convertible debentures (NCDs) on a private placement basis.

Its EBITDA jumped 30.2 per cent to Rs 70.4 crore in the second quarter of this fiscal over Rs 101 crore in the corresponding period in the previous fiscal. EBITDA margin stood at 3.1% in the reporting quarter as compared to 5.7% in the corresponding period in the previous fiscal. 

Profil before tax (PBT) was at Rs 85 crore as compared to Rs 13 crore in the corresponding quarter last year. Earnings per Share as of September 30, 2023, was Rs 1.05 compared to a negative of Rs 0.22 last year.

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