Havells India reported September-quarter consolidated revenue growth of 34.6%, outpacing a 9.7% rise in profit, while rapid cable growth coincided with weaker margins on a standalone basis.
The company’s board approved unaudited, limited-reviewed results Oct. 22 for the quarter ended Sept. 30. Revenue from operations reached ₹6,431.99 crore, up from ₹4,779.33 crore a year earlier. Profit for the period rose to ₹349.22 crore from ₹318.28 crore.
In a separate standalone update, net revenue increased 34.6% to ₹6,417 crore, and EBITDA (earnings before interest, taxes, depreciation and amortization) rose 30.5% to ₹576 crore. The standalone EBITDA margin declined to 9.0% from 9.3% in the year-earlier quarter. These figures use a different reporting basis from the consolidated results.
Cables drove much of the standalone growth: revenue for the category advanced 47.9% to ₹2,999 crore, while switchgear sales gained 31.3% to ₹782 crore. Cable contribution margin fell to 13.9% from 17.7% a year earlier. Havells said falling aluminum prices in the quarter affected cable margins. It also said calibrated price changes across its products countered raw-material inflation.
NDTV Profit reported Oct. 23 that Goldman Sachs lowered its Havells target to ₹1,225 from ₹1,400 and Jefferies reduced its target to ₹1,220 from ₹1,240. The outlet said the firms kept their Buy and Hold ratings, respectively. It linked Goldman Sachs’ revision to a slower return of margin improvement and lower earnings estimates. NDTV Profit said Jefferies considered the results close to expectations, while citing cost concerns.
Havells India Chairman and Managing Director Anil Rai Gupta told analysts on Oct. 22 that product-specific price increases of 5% to 7% would be needed in the current quarter.
