Earnings Review
Havells India misses Street view on Lloyd segment weakness
This story was originally published at 18:26 IST on 21 July 2025
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--Havells Apr-Jun net profit INR 3.52 bln
--Analysts saw Havells Apr-Jun net profit at INR 3.83 bln
--Havells Apr-Jun net profit INR 3.52 bln vs INR 4.11 bln year ago
--Havells Apr-Jun revenue INR 54.38 bln vs INR 57.98 bln year ago
--Havells Apr-Jun cables revenue INR 19.33 bln vs INR 15.21 bln year ago
--Havells Q1 electrical consumer durables sales INR 9.06 bln vs INR 10.55 bln
--Havells Apr-Jun Lloyd consumer sales INR 12.62 bln vs INR 19.24 bln yr ago
--Havells Apr-Jun switchgear sales INR 6.30 bln vs INR 5.76 bln year ago
--Havells Apr-Jun lighting, fixtures revenue INR 3.74 bln vs INR 3.86 bln
--Havels Apr-Jun EBITDA INR 5.20 bln vs INR 5.76 bln year ago
--Havells Apr-Jun EBITDA margin 9.6% vs 9.9% year ago
--Havells: Tepid summer in Apr-Jun led to significant fall in cooling pdts
--Havells: Consumer demand subdued, industrial-infra demand maintains growth
--Havells: Cost discipline helped contain decline in Apr-Jun net profit
--Havells: Demand of fans affected due to unseasonal rains, shorter summer
--Havells: Strong industrial-infra demand aided volume rise in cables, wires
--Havells: Apr-Jun inventory rises due to lower than planned sales in LLoyd
By Anand JC
NEW DELHI – A robust performance in Havells India Ltd.'s cables and wirings segment could not offset the weakness in its Lloyd Consumer segment, as the consumer durables major's June quarter revenue and net profit fell year-on-year and missed analysts' estimates. The company's revenue contracted on year for the first time since the June quarter of the financial year 2020-21 (Apr-Mar).
Havells India reported a net profit of INR 3.5 billion for the June quarter, down just over 14% on year and nearly 33% sequentially. The company's bottom line also missed the consensus estimate of INR 3.8 billion.
The company recorded revenue from operations of INR 54.4 billion for the June quarter, down 6% from INR 58.0 billion reported a year ago and nearly 17% lower than INR 65.3 billion in the March quarter. Analysts had expected the company to report a top line of INR 59.4 billion for the quarter under review.
Lloyd Consumer, Havells India's air conditioner and refrigerator brand, was the primary driver of weakness in the company's earnings. The segment's revenue for the quarter was INR 12.6 billion, down over 34% on year. Lloyd Consumer contributed a sizeable 23% to Havells India's June quarter revenue.
"Tepid summer this year, in contrast to the strong season last year, led to significant decline in cooling products," the company said in an investor presentation. "Consumer demand remains subdued while industrial-infra demand maintained its growth momentum," the company added.
The cables and wiring segment, which contributed 36% to Havells India's net sales, reported a revenue of INR 19.3 billion for the June quarter, up 27% on year. The company said the robust volume growth in cables and wires was supported by capacity expansion and strong industrial-infrastructure demand. The revenue of the electric consumer durables segment for the latest quarter fell 14% on year to INR 9.1 billion while the switchgears segment's revenue grew 9.3% on year to INR 6.3 billion. The company blamed weakness in the electric consumer durables segment on unseasonal rain and a shorter summer, which affected demand for fans and air coolers during the quarter.
Havells India's lighting and fixtures segment registered a revenue of INR 3.7 billion, down 3% on year. "Lighting revenue decline with (about) 10% YoY LED price deflation," the company said.
The company said segments that saw a contraction in revenue for the quarter under review also saw negative operating leverage, which led to lower margins at the segmental level.
For the June quarter, Havells India reported an earnings before interest, tax, depreciation, and amortisation of INR 5.2 billion, down nearly 10% on year. The company's EBITDA margin fell around 30 basis points on year to 9.6% for the June quarter.
"Focus on cost discipline resulted in modest growth in expenses, containing the impact of revenue decline on net profitability," the company said. Its total expenses for the quarter stood at INR 50.3 billion, down 5.5% on year. Like its revenue, its expenses, too, contracted for the first time since the June quarter of FY21.
While the company's other expenses and employee benefits grew in single digits on year, the cost of raw materials fell over 2% to INR 30.1 billion. The latter accounts for nearly 60% of Havells India's expenses. Its tax expenses fell nearly 14% on year to INR 1.2 billion for the June quarter.
The company disclosed its results right after the equity market closed for the day Monday. Its shares closed 0.9% higher on the National Stock Exchange at INR 1,531.60. End
Edited by Rajeev Pai
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