Tata Group’s Cooling Solutions Division Achieves Landmark Sales Milestone in FY24
Voltas, a prominent player in the air conditioning sector, has achieved a significant milestone by recording the highest-ever sales of air conditioners by any brand in a financial year in India. The Tata Group company reported sales of over 2 million AC units in FY24, marking a remarkable 35 percent growth compared to the previous fiscal year.
The surge in sales can be attributed to consistent demand for cooling products throughout the year, bolstered by a robust offline and online distribution network and the introduction of innovative new launches into the market.
With this achievement, Voltas emerges as the trailblazer in the Indian air conditioning industry, setting a precedent for excellence and market leadership. Pradeep Bakshi, MD and CEO of Voltas, attributed this success to the company’s widespread presence, focus on emerging retail channels, strong distribution network, brand equity, and attractive consumer offers.
Even during the March quarter, traditionally a period of low sales for compressor-based cooling products due to favorable temperatures, Voltas witnessed a remarkable 72 percent volume growth in AC sales. This underscores the brand’s resilience and market dominance, solidifying its position as the undisputed leader in the Room Air Conditioner category.
Bullish Outlook from HSBC: Target Price Raised
HSBC, exhibiting confidence in Voltas’ growth trajectory, has maintained a ‘buy’ rating on the stock, projecting a significant increase in profitability for the company’s unitary cooling products (UCP) division. The brokerage has raised the target price for Voltas shares to ₹1,350 per share from the previous target of ₹1,250, indicating a potential upside of 11% from previous closing levels.
In its analysis, HSBC highlighted the UCP segment’s robust demand and anticipated reduction in production costs, contributing to improved profitability. The brokerage expects the margin improvement in the UCP segment to serve as a positive surprise for investors, reaffirming Voltas’ position as a promising investment opportunity in the evolving cooling solutions market.
