Havells India Q1 Results: Profit Rises 42%, Meets Estimates
The lighting segment has experienced strong volume growth, and the favourable season has boosted the performance of fans and small domestic appliances.
Electrical equipment maker Havells India Ltd.'s first-quarter profit surged, meeting analysts' estimates.
The consumer electronic producer's net profit rose 42% year-on-year to Rs 408 crore in the quarter ended June 30, 2024, according to an exchange filing on Thursday. That compares with the Rs 399.8-crore consensus estimate of analysts polled by Bloomberg.
Revenue from operations rose by 20% to Rs 5,806 crore during the period.
Havells Q1 FY25 Earnings Highlights (Consolidated, YoY)
Revenue up 20% to Rs 5,806 crore (Bloomberg estimate: Rs 5,696.2 crore).
Ebitda rose 42% to Rs 572 crore (Bloomberg estimate: Rs 582.8 crore).
Ebitda margin expands 160 basis points to 9.9% (Bloomberg estimate: 10.2%).
Net profit up 42% at Rs 408 crore (Bloomberg estimate: Rs 399.8 crore).
The domestic growth in switchgear for the company achieved a 12% year-on-year increase. However, the wires segment has faced challenges, with revenue being impacted by channel destocking and the Ebitda suffering due to a sharp decline in commodity prices.
In contrast, the lighting segment has experienced strong volume growth, and the favourable season has boosted the performance of fans and small domestic appliances. Lloyd has capitalised on market opportunities and leveraged its large manufacturing capacity to drive profitability.
Despite the cost increases affecting switchgear margins, the realisation of benefits from cost-saving initiatives has significantly contributed to Lloyd's profitability.
Shares of Havells were trading 1.07% lower at Rs 1,855.30 apiece on the NSE after the results were announced, compared to a 0.74% decline in the benchmark Nifty at 3:02 p.m.
