Voltas shares rally on JV with Turkey's Arcelik

NEW DELHI: Shares of Voltas shot 9 per cent in Wednesday's trade after the company said it has inked an agreement with Turkey’s Arcelik to form a joint venture company.

The scrip of Voltas closed at Rs 447.55, up 9.23 per cent. It had climbed an intraday’s high of Rs 451.25, up 10.12 per cent.

The company announced a joint venture company with Arcelik A.S.’s subsidiary company Ardutch to tap into India's fast growing consumer durables market. The proposed JVC is set to get $100 million of private equity from both companies.

The air conditioner company reported a consolidated net profit of Rs 200 crore, up 22 per cent, for the quarter ended March 31, compared with Rs 164 crore in the corresponding quarter last year.

For the year ended March 31, 2017 the consolidated gross sales rose by 5 per cent to Rs 6,033 crore as against Rs 5,720 crore in the corresponding period last year. The company’s net profit also jumped by 30 per cent to Rs 511 crores as against previous year’s Rs 393 crore.