Havells India Limited- Q2 Results

Introduction

Havells India Limited is a leading Fast Moving Electrical Goods (FMEG) and power distribution equipment manufacturing company in India and is based in Noida. The company was founded in 1958, and today, it has 23 branches and representative offices in more than 50 countries. Havells also owns brands such as Lloyd, Standard Electric, and Reo and Promptec.

The company disclosed its financial results for Q2 of FY 2023-24 on October 19th and reported a net profit of ₹249.08 Cr. Here are the key facts and figures you must know.

Additional Read: Q2 Results Dashboard

Key Financial Metrics

Performance Highlights

• Havells India Limited reported an increase of 33.2% YoY in its net profit, which stood at ₹249.08 Cr for Q2 FY 2023-24.
• The company also reported a 6% YoY increase in the consolidated revenue from operations at ₹3,900 Cr.
• The Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) jumped by 30% to ₹373.3 Cr.
• Havells’ largest segment in terms of revenue, which is its cables segment, doubled its pre-tax profit to ₹171 Cr.

Havells, riding on strong cables and AC sales, reported a 33.2% increase in Q2 profit. The cable segment remained the company’s largest segment in terms of revenue because of sustained infrastructure spending, while air conditioners provided an additional boost to its revenue. The net profit, which stood at ₹249.08 Cr, increased from ₹187.01 Cr reported during the corresponding quarter last year.

However, according to LSEG data, the net profit failed to reach the analysts’s average estimate of ₹287 Cr. Sequentially, the company’s net profit for the quarter was down by 13.23%, as the net profit stood at ₹287.07 Cr during Q1 FY2023-24.

The company’s revenue from operations for Q2 FY 2023-24 increased by 6% YoY to ₹3,900.33 from ₹3,679.49 Cr. At the same time, the cable segment doubled its pre-tax profit to ₹171 Cr. However, the revenue for operations declined by 19.31% on a QoQ basis, as it stood at ₹4,833.8 Cr during the first quarter of the fiscal year.

Additionally, the total income for the quarter under review increased by 6.16% YoY at ₹3,952.81 Cr, up from ₹3,723.26 Cr during the same period last year. However, on a quarter-on-quarter basis, the total income declined by 19.3%, as it stood at ₹4,898.64 Cr during the first quarter.

At the operating level, the Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) rose 30.2% to ₹373.3 Cr during Q2 FY2023-24, against ₹287 Cr during Q2 FY2022-23. The EBITDA margin was reported to be 9.6%, while it stood at 7.8% during the same period last year.

Additional Read: Havells India Ltd Share Price

Segment-wise Results

The company reported that the revenue generated by the switchgear segment increased by 9% YoY to ₹532 Cr. The cables segment is important for the company, which rose 8% YoY to ₹1,470 Cr. However, the electrical consumer durables segment declined by 5% YoY to ₹733 Cr.

Havells India Limited: H1 Consolidated Financial Figures (YoY)

Particulars	H1 FY 2022-23	H1 FY 2023-24
Total income	₹8,015.31 Cr	₹8,851.45 Cr
Revenue from operations	₹7,923.95 Cr	₹8,734.13 Cr
Total expenses	₹7,436.33 Cr	₹8,134.08 Cr
Profit before tax	₹578.98 Cr	₹717.37 Cr
Profit after tax	₹430.17 Cr	₹536.15 Cr
Total comprehensive income	₹427.94 Cr	₹533.58 Cr

Havells India Limited: Consolidated Financial Figures (QoQ)

Particulars	Q1 FY 2023-24	Q2 FY 2023-24
Total income	₹4,898.64 Cr	₹3,952.81 Cr
Revenue from operations	₹4,833.80 Cr	₹3,900.33 Cr
Total expenses	₹4,516.59 Cr	₹3,617.49 Cr
Profit before tax	₹382.05 Cr	₹335.32 Cr
Profit after tax	₹287.07 Cr	₹249.08 Cr
Total comprehensive income	₹285.42 Cr	₹248.16 Cr

Havells India Limited: H1 Standalone Financial Figures (YoY)

Particulars	H1 FY 2022-23	H1 FY 2023-24
Total income	₹7,989.39 Cr	₹8,832.02 Cr
Revenue from operations	₹7899.08 Cr	₹8714.94 Cr
Total expenses	₹7,411.35 Cr	₹8,114.32 Cr
Profit before tax	₹578.04 Cr	₹717.70 Cr
Profit after tax	₹429.3 Cr	₹536.48 Cr
Total comprehensive income	₹427.57 Cr	₹534.41 Cr

Havells India Limited: Standalone Financial Figures (QoQ)

Particulars	Q1 FY 2023-24	Q2 FY 2023-24
Total income	₹4,888.39 Cr	₹3,943.63 Cr
Revenue from operations	₹4,823.70 Cr	₹3,891.24 Cr
Total expenses	₹4,506.06 Cr	₹3,608.26 Cr
Profit before tax	₹382.33 Cr	₹335.37 Cr
Profit after tax	₹287.38 Cr	₹249.10 Cr
Total comprehensive income	₹286.35 Cr	₹248.06 Cr

Consolidated Statement of Assets and Liabilities

Particulars	As of 30 Sep, 2023
Total non-current assets	₹4,321.34 Cr
Total current assets	₹6,695.25 Cr
Total assets	₹11,017.95 Cr
Total equity	₹6,899.24 Cr
Total non-current liabilities	₹731.65 Cr
Total current liabilities	₹3,387.06 Cr
Total liabilities	₹4,118.71 Cr
Total liabilities and equity	₹11,017.95 Cr

Stock Performance

Havells announced its financial results for Q2 FY 2023-24 after the market closed on October 19th. The share prices took a significant hit on 20th October as it closed with a decline of 5.16%. 

About the Company

Havells India Limited is India’s leading FMEG and power distribution equipment manufacturing company, with a presence in over 60 countries around the world. The company offers a diverse range of products, including fans, home appliances, ACs, and industrial and domestic circuit protection devices. In 2014, the company was ranked 125th among 1,200 of the country’s most trusted brands, as per the Brand Trust Report 2014.

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Sources:

https://www.havells.com/HavellsProductImages/HavellsIndia/Content/pdf/About-Havells/Investor-Relations/Financials/Quaterly-Results/2023-2024/Quarter2/Published_Results_Q2_FY24.pdf

www.havells.com/HavellsProductImages/HavellsIndia/Content/pdf/About-Havells/Investor-Relations/Financials/Quaterly-Results/2023-2024/Quarter2/Earnings_Call_Q2_F24.pdf

https://www.havells.com/HavellsProductImages/HavellsIndia/Content/pdf/About-Havells/Investor-Relations/Financials/Quaterly-Results/2023-2024/Quarter2/Havells_Information_Update_Q2_FY24.pdf