Havells India’s profit declined by 15.4% for the June quarter to ₹298 crore from ₹352 crore during the same quarter last year.
Revenue for the quarter increased by 20% year-on-year to ₹6,510 crore from ₹5,437 crore reported earlier.
Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter stood at ₹474 crore, a drop of 8.8% from the ₹520 crore reported last year.
EBITDA margin for the quarter dropped by over 200 basis points to 7.3% from 9.6% during the year-ago period.
Havells India, in its investor presentation, stated that its segment EBIT margins were materially impacted by elevated advertising and promotions (A&P) spends in the first quarter.
However, with the recent price hikes and normalising A&P spends, the margin outlook remains positive.
Here’s how Havells fared across business segments:
Switchgears business saw a revenue decline of 3.5% from the same quarter last year to ₹608 crore.
Cables business revenue grew by 27% year-on-year to ₹2,456 crore.
Lighting & Fixtures business revenue increased by 4.5% year-on-year to ₹390 crore, while Electrical Consumer Durables revenue increased by 12% from the year-ago quarter to ₹1,113.
Lloyd Consumer business revenue increased by 15.7% year-on-year, while renewables business revenue more than tripled in value.
On another note, the company on Thursday announced an expansion of its cable manufacturing capacity at its Vasanthnarasapura Industrial Area facility in Karnataka with an additional investment of around ₹255 crore.
Havells plans to increase the annual cable manufacturing capacity at the unit to 7.34 lakh km from the current 4.59 lakh km. The same is expected to be completed by December 2027 and would be funded via internal accruals.
Shares of Havells India were trading 1.7% lower at ₹1,150.2 apiece at 2.30 pm on Friday. The stock has declined 3.9% in the past month and 18.9% this year, so far.
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