Havells India expects demand momentum to continue in the December quarter, with early festive-season trends showing positive traction across select consumer durable categories. Chairman and Managing Director Anil Rai Gupta told NDTV Profit that the company expects cables and wires margins to remain stable, while Lloyd's profitability could improve as the air conditioner season picks up.
Speaking to NDTV Profit, Gupta said initial trends from modern format retail and e-commerce had been encouraging, although the full impact of the Diwali festive season was yet to emerge. Small domestic appliances, personal grooming products, and Lloyd's television business had seen positive momentum.
Cables And Wires Margins To Remain Stable
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Havells' earnings before interest, taxes, depreciation, and amortisation (EBITDA) margin contracted by 30 basis points in the September quarter, with the cables and wires business contributing to the pressure. Gupta said margins in the segment remained above 15% in the first half of the financial year and were expected to stay within the usual range of 15% to 16% in the coming quarters.
He said nearly 60% of Havells' cables and wires business came from domestic wires, making it relatively consumer-focused. However, higher prices have affected volume growth, with contractors and builders sometimes delaying purchases. The business continued to record high single-digit volume growth, Gupta said.
Lloyd Recovery Hinges On Seasonality
Gupta said Lloyd had delivered decent growth in both the June and September quarters, driven largely by volumes rather than price increases.
However, room air conditioners account for around 70% of Lloyd's business, making the September quarter seasonally weak.
Gupta expects profitability to improve as the air conditioner season picks up and price increases to offset higher raw material costs.
He described Lloyd as a medium-term investment opportunity in an industry worth more than Rs 1 lakh crore. Havells continues to invest in manufacturing capabilities, brand building, and distribution to strengthen the business.
Havells Expands Beyond Air Conditioners
Gupta said Havells had invested in newer categories, including refrigerators and washing machines, and had established a large manufacturing facility for refrigerators. Lloyd's television business has also continued to grow at a healthy pace.
While air conditioners remain the largest contributor to the business, Gupta expects other product categories to account for a greater share over time. He said the company's focus remained on building Lloyd into a meaningful player in the broader consumer durables market.
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