Shares of Tata Group company Voltas Ltd. surged as much as 9.4% to a record high of ₹1,563 on Monday after the company reported its June quarter results.

Voltas reported a 47% growth in its revenue for the June quarter to ₹4,921 crore, led by strong performance in its core Unitary Cooling Products (UCP) segment. The UCP segment reported revenue growth of 51% from last year, while its margin expanded by 40 basis points to 8.6%.

The Unitary Cooling Products (UCP) business contributed to 77% of Voltas’ overall sales for the quarter.

The company’s Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) more than doubled on a year-on-year basis, rising 129% to ₹424 crore.

Margins also expanded by 310 basis points to 8.6% from 5.5% last year.

A key highlight of the quarter was the turnaround of its Electro-Mechanical Projects and Services (EMPS) business, where the revenue increased by 40% year-on-year, while margins turned positive, coming in at 7.1%.

Nearly 20% of Voltas’ sales during the quarter came from this EMPS business.

Voltas’ Engineering Products and Services business revenue increased by 13% from the year-ago quarter but margins narrowed to 28% from 38% last year.

Out of the 40 analysts that have coverage on Voltas, 17 of them have a “buy” rating, 13 say “hold”, while ten of them have a “sell” recommendation.

At the current price, shares of Voltas are trading at a one-year forward multiple of 48.5 times, which is lower in comparison to the five-year average of 104 times.

Shares of Voltas are currently trading 7.1% higher at ₹1,530.1. The stock is up 57% so far in 2024.

(With Inputs From Upasana Bhatt)