Voltas Completes Transfer of Investment in Weathermaker FZE to UMPPL

Voltas announced the completion of transferring its 100% investment in Weathermaker FZE to Universal MEP Projects Pte Limited (UMPPL), receiving ₹30 crore. The transfer maintains Voltas’ economic interest in the company.

Transfer of Investment Details

Voltas Limited has informed that, following the satisfaction of all conditions precedent and receipt of necessary approvals, it has completed the transfer of its direct investment in Weathermaker FZE – UAE to Universal MEP Projects Pte Limited (UMPPL) on January 15, 2025.

The consideration amount of ₹30 crore has been received by Voltas. Despite the transfer, the company’s economic interest in Weathermaker FZE remains unchanged, as it continues to be a wholly owned subsidiary of Voltas through UMPPL, which is a step-down wholly owned subsidiary.

Additionally, Voltas has confirmed that the transfer of its direct investment in Saudi Ensas Company for Engineering Services and Trading LLC to UMPPL is expected to be completed before March 31, 2025, or by a mutually agreed date.

Q2 FY25 Financial Highlights

Voltas shares fell by 2.58% to ₹1,724.75 after the company reported a 59.91% drop in consolidated net profit to ₹133.99 crore, alongside a 46.78% decline in revenue from operations to ₹2,619.11 crore in Q2 FY25 compared to Q1 FY25.

However, on a year-on-year basis, Voltas saw significant growth, with net profit soaring 265.29% and revenue from operations rising 14.23% for the September 2024 quarter.

Profit before tax (PBT) for Q2 FY25 was ₹205.43 crore, down 54.5% from the previous quarter but up 141.8% from the same period last year.

For the first half of FY25, Voltas reported a 182.11% increase in net profit to ₹468.22 crore, driven by a 33.39% growth in revenue from operations to ₹7,540.13 crore compared to H1 FY24.

The unitary cooling products business continued its strong performance with a 56% volume growth, maintaining its market leadership in both split and window air conditioners with a market share of 21% as of September 2024.

Share Price Performance

Volta’s share price traded 2.82% lower at ₹1,579.25 at 12:04 PM on the NSE. The stock opened at ₹1,633.25 higher than ₹1,625.15 at its previous close.

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