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Centrum Broking Report
Havells India Ltd.'s revenues grew 33% YoY to Rs 44.2 billion (20% volume led), 11% above our estimate.
Topline was driven by a strong ramp up in Lloyd (up 62% YoY to Rs 9.6 billion) and cables (up 45% YoY to Rs 14.9 billion).
Gross margin fell 810 basis points YoY and 300 bps QoQ to a decadal low of 29.3% due to cost inflation, inability to take full price hikes and inferior sales mix (Lloyd forming 22% of sales versus 18% YoY).
Ebitda margin fell 340 bps YoY and 30 bps QoQ to 11.8%, below our estimate of 13%. Ebitda grew 3% YoY to Rs 5.2 billion, while lower tax rate (at 25.7% versus 33.5% YoY) aided profit after tax growth of 17% YoY to Rs 3.5 billion, in line with our estimate.
Havells attained 11-12% volume growth in FY22 and is hopeful of sustaining this rate for the next couple of years.
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