Havells India

The electrical equipment maker, Havells India had posted a good performance for Q2FY13 and it followed it up with an even better performance in Q3. It showed a 9% (QoQ) jump in net profit at Rs.95 crore and this was on the back of good growth in all its segments – switchgears, cables, lighting and fixtures. Net sales rose 9% at Rs.1052 crore. Domestic switchgear segment sequentially grew 6%, sales from cables grew 4%, lighting and fixtures rose 13% while electrical consumer segment rose 25%, sales from switchgear rose 15% while.

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 good reduction in interest outgo in current Q3 and the company expects the burden to come down significantly by end of FY13. During the current Q3, the company expanded Havells Galaxy chain by opening 12 more stores across India, taking the total such outlets to 189. 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.