Earnings Review
Havells Jul-Sept PAT up 9.4% on year, misses Street view
This story was originally published at 19:50 IST on 17 October 2024
Register to read our real-time news.Informist, Thursday, Oct. 17, 2024
Please click here to read all liners published on this story
--Havells Jul-Sept net profit INR 2.73 bln
--Analysts saw Havells Jul-Sept net profit INR 3.27 bln
--Havells Jul-Sept revenue INR 45.33 bln
--Havells Jul-Sept net profit INR 2.73 bln vs INR 2.49 bln year ago
--Havells Jul-Sept revenue INR 45.33 bln vs INR 38.91 bln year ago
--Havells Apr-Sept net profit INR 6.84 bln vs INR 5.36 bln year ago
--Havells Apr-Sept revenue INR 103.31 bln vs INR 87.15 bln year ago
--Havells shares fall more, now down 4.2% vs 2% earlier
--Havells Jul-Sept EBITDA INR 3.80 bln, up 1.7% on year
--Havells Jul-Sept EBITDA margin 8.4% vs 9.6% year ago
--Havells Jul-Sept cables segment revenue INR 18.05 bln, up 23% on year
--Havells Jul-Sept Lloyd consumer segment revenue INR 5.87 bln, up 19% on yr
--Havells Volume growth in cable segment mainly driven by wires
--Havells Spillover from Apr-Jun destocking aided volumes in cable segment
--Havells Jul-Sept advt, sales promotion cost INR 1.3 bln vs INR 846.3 mln
--Havells Higher advt spends moderated margins across segments in Jul-Sept
--Havells Expect advt spends to normalise over subsequent quarters
By Arya S. Biju
MUMBAI – Havells India Ltd. reported a lower-than-expected net profit for the September quarter, even as the top-line surpassed the Street's estimate. The consumer durable goods and power distribution equipment manufacturer reported a net profit of INR 2.72 billion for Jul-Sept, up 9.4% on year. Analysts had expected the company's net profit to rise 32.1% on year to INR 3.29 billion in the September quarter.
Havells reported revenue from operations of INR 45.33 billion for the September quarter, up 16.5% on year, beating estimates of INR 43.74 billion. The company's revenue growth was led by sales from its cables and wires division. The other income of the company for the September quarter was INR 927.6 million, up 77% on year. This included an insurance claim for the fire incident at its factory in Neemrana, Rajasthan, in 2022, which has been fully settled, Havells India said. The company has received INR 328.4 million towards replacement value from the insurance company on loss recoverable of INR 157.9 million.
In the September quarter, Havells' earnings before interest, taxes, depreciation, and amortisation, or EBITDA, rose 1.7% on year to INR 3.8 billion, below analysts' estimates of INR 4.69 billion. Its EBITDA margin was 8.4%, lower than 9.9% in the previous quarter. The EBITDA margin was 9.6% in the same period a year ago.
The revenue of the company for Apr-Sept was INR 103.31 billion, up 16.3% on year. The net profit for the period was INR 6.84 billion, up 28%.
Total expenses of the company rose 18% on year to INR 42.57 billion in the September quarter. This was led by the cost of raw materials and components at INR 24.44 billion, up 8%. The purchase of traded goods for the reporting quarter increased nearly 55% on year to INR 8.9 billion. Other expenses of the company rose 43% on year to INR 6.62 billion.
The advertisement and sales promotions expenses rose 54.4% to INR 1.3 billion from INR 846.3 million a year ago. This was led by a shift in the festive season, and is expected to normalise over the subsequent quarters, Havells said.
Havells said it saw decent overall growth across segments, driven by improvement in consumer demand. The cables and wires division contributed the most to the company's top-line in the September quarter. The segment's revenue for the quarter was INR 18.05 billion, up 23% on year. "Strong volume growth in the cable segment was predominantly driven by wire, which was also aided by spillover from Q1 (Apr-Jun) destocking," Havells said. However, the cable margins were impacted owing to absorption of high-cost inventory against falling raw material/sales prices during May-Aug and high volatility in commodity prices.
The company's electricals and consumer durables division reported a revenue of INR 8.56 billion, up 17% on year. This came on the back of a demand pickup in the festival season that supported sales of fans, small domestic appliances, and water heaters. The company reported a 4% growth in its switchgear segment revenue, which rose to INR 5.5 billion. Even though switches and domestic switchgear showed decent growth, industrial switchgear growth was impacted by a higher base due to large institutional orders last year, the company said.
Lloyd, the consumer durables brand of Havells, which sells air conditioners, washing machines, light-emitting diode televisions, and refrigerators, reported a net loss of INR 223.6 million for the quarter. However, the revenue from operations of the brand was INR 5.87 billion for the quarter, up 19.2% on year.
On Thursday, shares of Havells closed at INR 1,805.55 on the National Stock Exchange, down 7%. End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Tanima Banerjee
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (22) 6985-4000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2024. All rights reserved.
To read more please subscribe
Share this Story:
