Havells Q3 Review- Healthy Topline Growth; Raw Material Cost Volatility Starting To Increase: 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 Q3 FY23 revenue of Rs 41.2 billion, up 12.8% YoY (three-year compound annual growth rate of 22%), 2.1%/1.8% above our/consensus estimates on the back of healthy growth across all business verticals. Switchgears/cables/lighting and fixtures/electrical consumer durables /Lloyd grew by 3.7%/17.1%/3%/4.7%/30.3% YoY. Gross margin expanded by 70 bps YoY to 33% due to the easing of commodity cost pressures. Havells' Ebitda declined by 3.8% YoY to Rs 4.2 billion. Ebitda margin contracted by 180 bps YoY to 10.3%, which was above our estimate of 8.5%, but below consensus estimate of 10.6%. Ebitda margin improved by 250 bps QoQ mainly due to recovery in cables segment margin post liquidation of high-cost inventory. Contribution margins expanded across segments due to stability in raw material prices during the first half of Q3 FY23. Consequently, the profit after tax declined by 7.2% YoY to Rs 2.8 billion. The bottom-line was above our estimate by 25%, but below consensus estimate by 1.8%. The management highlighted that muted business-to-consumer demand affected consumer facing businesses. Further, raw material cost volatility started increasing from the second half of Q3 FY23. .Click on the attachment to read the full report:.Havells India Q3 Results Review - Outperformance To Continue: Yes Securities.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 Q3 Review- Healthy Topline Growth; Raw Material Cost Volatility Starting To Increase: Nirmal Bang

Havells India reported Q3 revenue of Rs 41.2 billion, up 12.8% YoY on the back of healthy growth across all business verticals.

Choose a plan