Havells India’s Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter declined by 4.5% from the same quarter last year to ₹727 crore. A CNBC-TV18 poll had pegged the figure at ₹691 crore.
EBITDA margin for the quarter stood at 10.8%, 90 basis points lower than the 11.7% figure reported during the same quarter last year. The margin figure too, despite being lower than last year, was better than analyst expectations.
Havells India’s cable business revenue increased by 14% from last year, while its Earnings Before Tax (EBIT) saw growth of 36% year-on-year. EBIT margin for this business increased to 14.2% from 11.9% last year.
Additionally, former Britannia MD & CEO Varun Berry has been appointed as an independent director on the company’s board.
Havells India’s net profit increased by 40.6% on a year-on-year basis to ₹734 crore. However, this was aided by a near five-fold jump in the company’s other income to ₹325.8 crore from just under ₹70 crore last year. The other income component saw a fair value gain of ₹283 crore this quarter.
Revenue for the quarter grew by 2.4% from last year to ₹6,687 crore, marginally lower than the CNBC-TV18 poll of ₹6,971 crore.
In its investor presentation, Havells India said that the cables business performance was healthy as strong growth was seen in the power cables business. Wires business saw muted growth with channel inventory normalizing and a high base in the base quarter.
There was moderation in Lloyds revenue during the quarter due to a high base and the delayed onset of the summer season. However, on a sequential basis, the revenue for the Lloyds business was higher. The lower revenue for Lloyds impacted margins for the business as well, but for the overall business, they remained steady.
Shares of Havells India are trading 4.8% higher after the results announcement at ₹1,391.8. The stock has risen 13% over the last one month.
