Havells Q2 net up 82% to Rs 326 crore, sales up 10% at Rs 2,459 crore

Consumer electrical goods maker Havells India Ltd on Thursday reported an increase of 81.97 per cent in its consolidated net profit at Rs 326.36 crore for the second quarter ended September 2020.

The company had posted a consolidated net profit of Rs 179.34 crore in the July-September quarter a year ago, Havells said in a regulatory filing.

Its revenue from operations was up 10.16 per cent to Rs 2,459.49 crore during the period under review, as against Rs 2,232.65 crore in the corresponding period last fiscal, the company said.

"We are encouraged with the pace and extent of demand recovery. Consumer & Residential demand is robust, however Industrial & Infrastructure sales remain sluggish though trending towards a gradual recovery," Havells India Chairman and Managing Director Anil Rai Gupta said.

He further noted that "our initiatives in rural, online and channel engagement have well delivered," he added.

Havells total expenses were at Rs 2,113.92 crore, as against Rs 2,055.55 crore, up 2.83 per cent.

Revenue from switchgears segment was Rs 370.27 crore, up 1.77 per cent as against Rs 363.83 crore in the year-ago period.

However, revenue from its cables segment was down 4.46 per cent to Rs 784.67 crore, as against Rs 821.31 crore of Q2/FY 2019-20.

Havells' revenue from lighting and fixtures in the July-September quarter was up 6.50 per cent to Rs 272.30 crore, against Rs 255.67 crore in the corresponding quarter of the previous year.

While Electrical consumer durables (ECD) was up 18.29 per cent to Rs 579.87 crore, as against Rs 490.21 crore in the year-ago period.

"Consumer and Residential portfolios registered mid-teens growth across segments, ECD being the bellwether. Consumer lighting was beneficiary of Rural Vistaar and deeper distribution," Havells said in its post result investor's presentation.

Revenue from Lloyd Consumer, a company which Havells had acquired in 2017, was up 55.84 per cent to Rs 280.44 crore during July-September quarter, as against Rs 179.95 crore.

"ACs led the growth in Lloyd, supported by washing machines and recently launched refrigerators," the company said.

Over the ongoing festival season, Gupta said it seems to be evolving "decently", though COVID development needs to be observed for sustenance.

"We welcome the recent impetus to Aatmanirbhar Bharat' with prohibition on AC import. It augurs well for integrated manufacturers like Lloyd, he said.

Shares of Havells India Ltd closed at Rs 725.05 on BSE, down 0.44 per cent from its previous close.


(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)


Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel