Havells India

The electrical equipment maker, Havells India posted a good performance for Q2FY13. It showed a 24% (YoY) jump in net profit at Rs.87 crore and this was on the back of good growth in all its segments – switchgears, cables, lighting and fixtures. Net sales rose 13% at Rs.964 crore. What also helped was the forex gain of Rs.10 crore. Domestic cable segment grew 42%, electrical consumer segment rose 33%, sales from switchgear rose 15% while lighting and fixtures rose 14%. Industrial cables sector was down due to low capex demand

The company hopes to end the current fiscal with a 20% jump in its topline and bottomline. The company earned US$38mn from OSRAM following settlement of an old dispute in Havells’ favor. And this money was used to partly settle the debt and this has resulted in a marginal reduction in interest outgo in current Q2 but the company expects the burden to come down significantly by end of FY13. Its Rs.100 crore plant at Neemrana at Rajasthan for lighting and fixtures was opened and over the next two years, the company expects this plant to contribute Rs.200 crore to the revenue of which 40-50% is expected to come from exports.