Voltas H1 Net Profit up by 41 %; Net Sales up by 14 %

Mumbai, October 27, 2003: Voltas Limited, the air conditioning and engineering services company of the Tata Group, has posted a significant growth in Net Profit and Net Sales in the first half ended September 2003.

The Company registered a 41% increase in Net Profit to Rs 1449 lakhs in H1 ended September 2003 as against Rs 1029 lakhs in the corresponding H1 of the previous year. The Company's net sales rose by 14% to Rs.66870 lakhs as against Rs.58787 lakhs. The Electro - Mechanical Projects & Services Segment has been the major contributor to the increase in the net sales.

The Company's Operating Profit (Profit Before Tax and Extraordinary Items) for Q2 ended September 2003 has risen by 181% to Rs 560 lakhs from Rs 199 Lakhs in the corresponding quarter of the previous year.

The Company's Net Profit was at Rs.430 Lakhs in Q2 ended September 2003 compared to Rs.752 Lakhs.

The Company had last year applied to the Bombay High Court for adjusting the balance in Deferred Revenue Expenditure (DRE) against the Share Premium Account. Arising out of the Bombay High Court approval in September 2002, the Company had during the quarter ended September 2002, reversed the amortisation of VRS charge (DRE) of Rs.887 lakhs resulting into higher extraordinary income/profit before tax for the said quarter. Excluding this onetime credit, the extraordinary income for the quarter ended September 2002 would be Rs.155 lakhs and the profit before tax, Rs.354 lakhs, as against Rs.641 lakhs during the current quarter September 2003, which reflects an increase of 81%.

During the quarter under review, the Company has achieved a landmark settlement with its UNION whereby the pending disputes between the Union and the Company have been resolved and both the parties have agreed to withdraw all pending cases from the Court.

The highlights of the financial results are attached herewith for your perusal.

Financial Results