AC makers report surging Q1 profits and revenue amid blistering heat

New Delhi: Air-conditioner makers have logged a high double-digit growth in revenue and several of them had over two-fold jump in profits during April-June quarter amid increased demand due to the blistering summer.

Companies such as Voltas, Blue Star, Whirlpool of India, Johnson Hitachi, and Havells which owns Llyods brand have reported a high growth trajectory in their top-line and bottom line, led by record sales in the April-June period.

Tata group firm Voltas, a leading player in the room AC segment, reported over two-fold jump in consolidated net profit at Rs 335 crore and its revenue from operation went up 46.46 per cent to Rs 4,921 crore.

Voltas also reported achieving the "milestone" of one million units of AC sales in the first quarter of FY25 and its total income crossed the Rs 5,000 crore-mark during the period.

In the first quarter of this financial year, Voltas' revenue from "unitary cooling products for comfort and commercial use" that come under its room AC business vertical was up 51.24 per cent to Rs 3,802.17 crore. Its overall volume grew by 67 per cent in the AC segment in the April-June period.

"The unitary cooling products business continued to outperform the market and maintained its growth momentum," it said, adding, "Voltas continues to be a market leader both in split and window air-conditioners with an exit market share of 21.2 per cent as on June 2024.

Blue Star also reported a two-fold increase in consolidated net profit at Rs 168.76 crore, while its revenue from operations rose 28.72 per cent to Rs 2,865.37 crore in the June quarter Its revenue from unitary products business, which includes room AC sales, registered a 44.31 per cent rise to Rs 1,729.52 crore during the period.

"With most parts of the country witnessing extremely high temperatures and an overall harsh summer, the increase in demand led to an unprecedented growth in the room air-conditioners business," it said.

During the quarter demand exceeded inventory plans of the business and while the company met most of the excess requirements through an increased production, it still lost some opportunities to cater to the entire demand that the season offered, Blue Star said.

Similarly, Havells reported a profit of Rs 67.39 crore for Lloyd's business, which takes care of its room AC business. It had reported a loss of Rs 61.48 crore in the year-ago period.

Revenue from Lloyd business, a brand which was acquired by Havells in 2017, was up 47.43 per cent to 1,924 crore.

In the earnings call, Havells management said, "heavy lifting has been done by the air-conditioner" business and it witnessed many first-time buyers of air conditioners.

"... We feel that this may trigger an inflection point for the under-penetrated AC industry," it said.

Whirlpool of India's consolidated profit surged 89.4 per cent to Rs 145.3 crore and revenue from operations rose 22.5 per cent to Rs 2,496.9 crore.

Its revenue growth was driven by industry growth in refrigerators and air-conditioners, the company said in its earnings statement.

Johnson Controls-Hitachi Air Conditioning India, which sells residential AC under the Hitachi brand, also reported over 76 per cent growth in its revenue to Rs 982.29 crore in the June quarter from the 'cooling products for comfort and commercial use' segment.

Consumer Electronics and Appliances Manufacturers Association (CEAMA) President Sunil Vachani had earlier said he expects annual sales volumes of room ACs to be around 14 million.