- Havells' Q1 net profit fell 16.7% to Rs 290 crore, missing estimates of Rs 420.5 crore
- Revenue rose 19.5% year-on-year to Rs 6,518 crore, slightly beating expectations
- EBITDA dropped 9.5% to Rs 467 crore; margin shrank to 7.2% from 9.4% last year
Havells India Ltd's June-quarter earnings missed Street estimates, as margin pressure and continued losses in its Lloyd business offset robust revenue growth across key segments.
For the June quarter, Havells reported a 16.7% year-on-year decline in consolidated net profit to Rs 290 crore, significantly below Bloomberg estimates of Rs 420.5 crore. Revenue, however, rose 19.5% to Rs 6,518 crore, marginally ahead of analysts' expectations of Rs 6,476 crore.
Havells Q1 Results - Cons, YoY
- Net profit down 16.7% at Rs 290 crore vs Rs 348 crore
- Revenue up 19.5% at Rs 6,518 crore vs Rs 5,455 crore
- EBITDA down 9.5% at Rs 467 crore vs Rs 515 crore
- EBITDA margin at 7.2% vs 9.4%
Operating performance remained under pressure. EBITDA fell 9.5% year-on-year to Rs 467 crore, while the EBITDA margin contracted sharply to 7.2% from 9.4% a year earlier. The margin also came in well below Street expectations of 9.54%.
Among business segments, the cables division continued to be the standout performer, with revenue rising 27% to Rs 2,456 crore, supported by healthy demand. However, EBIT growth in the segment remained modest at 5%, reflecting cost pressures. The electrical durables business posted 12% revenue growth, but profitability weakened significantly, with EBIT declining 26% year-on-year.
Meanwhile, the Lloyd consumer appliances business continued to weigh on overall profitability. Revenue increased 15% to Rs 1,457 crore, but the division remained loss-making, reporting an EBIT loss of Rs 56.3 crore.
The switchgears segment also saw a softer quarter, with revenue declining 4% and EBIT falling 14% from a year earlier. While topline growth remained healthy, investors appeared more concerned about profitability, as higher costs and losses in the Lloyd business overshadowed the strong performance in cables and other growth segments.
The stock touched an intraday high of Rs 1,192.40 before reversing course to trade around Rs 1,147.90, down nearly 2%.
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