Havells India Q1 Results: Lloyd, consumer durables business drag revenue, margins

Havells India Ltd., the wires and cables company reported its June quarter results after market hours on Monday, July 21, where the numbers were lower than expectations on most fronts compared to last year.

Revenue for the quarter fell by 6.2% from the year-ago period to ₹5,438 crore. The CNBC-TV18 poll had projected the figure to be ₹5,767 crore. The drag in topline came from the Electrical Consumer Durables, and Lloyd Consumer business.

Revenue from the Electrical Consumer business fell to ₹906 crore from ₹1,055 crore last year, while Lloyd Consumer business revenue fell 35% from the year-ago period to ₹1,262 crore from ₹1,924 crore. Analysts were expecting a decline of 20% for the Lloyd's business.

Havells' Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) fell by 10% from the year-ago period to ₹520 crore, while margins narrowed by 40 basis points to 9.6% from 10% last year.

The company's Switchgear and cables businesses saw revenues increase from the same quarter last year.

Net profit for period declined to ₹347 crore at the end of the June quarter, from ₹407 crore last year.

The management attributed the quarterly performance to a tepid summer this year, in contrast to a strong season last year, which led to a significant decline in cooling products. The investor presentation highlighted that consumer demand remained subdued while industrial infra demand maintained its growth momentum.

Shares of Havells India saw a spike towards the end of the day, ending 1% higher before the results announcement at ₹1,533. The stock is down 9% so far this year.