Havells India shares fluctuated on Thursday, October 22, after the company reported its September quarter results. Revenue grew 34.6% to ₹6,416 crore, beating expectations. Net profit rose 11.2% to ₹353 crore. The company said, "Rest of the portfolio held margins as calibrated price hikes offset the raw material inflation."
Shares of Havells India Ltd. are fluctuating between gains and losses on Thursday, October 22, after it reported its September quarter results, which were largely in-line with expectations across parameters.
Revenue for the quarter increased by 34.6% on a year-on-year basis to ₹6,416 crore, which turned out to be well above the CNBC-TV18 poll expectation of ₹5,937 crore.
Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter stood at ₹576.3 crore, a growth of 30.6% on a year-on-year basis, and marginally higher than the CNBC-TV18 poll figure of ₹536 crore.
EBITDA margin narrowed by around 30 basis points to 9% from 9.26%, and the CNBC-TV18 poll was also working with a similar projection
Net profit for the quarter stood at ₹353 crore, in-line with the ₹352 crore estimate, and higher by 11.2% over the year-ago period.
In its post earnings remarks, Havells said that consumption demand remained steady despite high inflation but contribution margins were soft mainly due to the cables business, where the fall in aluminium prices weighed on the margins. "Rest of the portfolio held margins as calibrated price hikes offset the raw material inflation," the statement from the company said.
Revenue for the Switchgears business grew by 31.3% from last year, while the cables business grew nearly 48% on a year-on-year basis. Lighting & Fixtures business saw 7% revenue growth, while the Electrical Consumer Durables business saw 10.7% growth year-on-year. Renewables business saw 147% growth from last year to ₹329 crore as well.
Havells India's Segmental PerformanceSegmentQ2 Revenue (₹ Cr)Change (%, YoY)Switchgears78231.3Cables2,99947.9Lighting & Fixtures4497Electrical Consumer Durables1,07210.7Renewables329147.8Others17119.3
Investor Presentation
The Switchgears business saw strong growth supported by domestic demand pick-up and a recovery in exports after the disruption seen during the June quarter. Growth in the cables business was led by commodity-linked price increases and a shift in product mix towards higher sized cables.
Lloyds' Contribution Margin also remained subdued with raw material inflation and under-absorption.
Capex for the full year is anticipated to be around ₹1,400 crore, primarily towards capacity addition in cables and investment in the new R&D center.
Shares of Havells India are trading 0.6% lower after the results announcement at ₹1,064.8. The stock is down 25% this year so far.