Havells India surges 6%, hits new high on strong December quarter results

the company's board of directors has declared an interim dividend of Rs 3 per equity share of Re 1 each
Shares of Havells India hit a new high of Rs 1,086 on Thursday after rallying 6 per cent on the BSE in early morning trade after the company reported a strong set of numbers for the quarter ended December 2020 (Q3FY21). Havells India's standalone net profit for Q3FY21 jumped 75 per cent year on year (YoY) at Rs 349 crore, on the back of strong revenue growth.

The company’s revenue during the quarter increased by 40 per cent YoY at Rs 3,166 crore. Ebitda (earnings before interest, taxes, depreciation, and amortization) margins expanded by 420 basis points (bps) at 16.0 per cent from 11.8 per cent in the corresponding quarter of previous fiscal.

The management said the encouraging business performance with secular growth across divisions and regions was led by improvement in consumer sentiment, festive season and reduction in Covid-19 cases and increased penetration in smaller towns and a higher rural reach. The supply chain disruption faced by suppliers with high import dependence has further supported market share gains, it said.

“Strong festive demand, market share gains and increased penetration in smaller towns helped Havells to record a strong set of numbers during Q3FY21. We await management commentary on sustainability of the recovery in the Industrial business and outlook of consumer business going forward,” ICICI Securities said in a note.

Meanwhile, the company's board of directors has declared an interim dividend of Rs 3 per equity share of Re 1 each i.e. at 300 per cent on the equity share capital of the company. The company has fixed January 29, 2021 as record date for ascertaining eligibility of shareholders for payment of interim dividend.


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