Voltas, the second largest AC brand in India was up and about yesterday. With summer already scorching heat, this is the peak season time for AC companies like Voltas. And the company has made the right move at the right time, getting ready for the summer heat. It announced yesterday introduction of new ACs of 0.75 tonnes to 3 tonnes capacities, adding 5 new models with 20 variants to its existing line-up. It plans to penetrate the market with 70 new ACs in the market this season and hopes to increase its market share from the present 19%.
Q3FY11, as expected being the cyclically behavior of such companies, was subdued for Voltas. On a YoY 5% rise in net sales, it reported a 10% drop in net profit. It’s 50:50 JV with Riyadh based company for execution of electro mechanical projects in the country is expected to go on stream by April 2011. But unless the current turmoil in Bahrain is contained, this date could get postponed. Q4FY11 will be better than Q3 but it is Q1FY12 which will be more exciting. Good long term buy at every dip.
Source: internet (premiuminvestments.in)
may open Negative but recovery expected at lower levels and flat trading expected today with very high volatility.