Havells India Q1 - Margin Pressures Offset Topline Growth; Expect Margins To Normalise From Q3: Nirmal Bang

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Nirmal Bang Report.Havells India Ltd. reported Q1 FY23 revenue of Rs 42.3 billion, up 62.8% YoY, beating our/consensus estimates by 4%/8.3% on the back of healthy growth across all business verticals. Switchgears/cables/lighting and fixtures/electrical consumer durables/Lloyd grew by 38.4%/47.8%/76.8%/45.5%/119.2% YoY. Gross margin contracted by 670 basis points YoY due to the challenges posed by commodity cost pressures. Havells India's Ebitda grew marginally by 2.3% YoY to Rs 3.6 billion. Ebitda margin declined by 510 bps YoY to 8.5%, way below our/consensus estimate of 11.4%/12%. Volatility in metal prices affected margins, particularly in the cables segment. Profit after tax grew by 3.5% YoY to Rs 2.4 billion. The bottomline was below our/consensus estimate by 24.1%/23.2%. However, the management expects margins to normalise from Q3 FY23..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Havells India Q1 - Margin Pressures Offset Topline Growth; Expect Margins To Normalise From Q3: Nirmal Bang

Havells India Q1 - Margin Pressures Offset Topline Growth; Expect Margins To Normalise From Q3: Nirmal Bang

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