Havells India

Havells, India’s largest electrical parts maker, YoY has posted a good set of numbers but QoQ, it does show pressure. Net profit for Q3FY14 came in at Rs.121 crore, up 27% (YoY) and down 4% at Rs.121 crore. Net revenue came in at Rs.1174 crore, up 11% (YoY) and QoQ, it was flat, showing a marginal rise of less than 1%. Sequentially, sluggish demand apart, the higher interest outgo and taxation pulled down the bottomline.

QoQ, switchgears and cable, both segments showed a drop in topline and EBIT and it were the other two, lighting & fixtures and electrical consumer durables which saved the show, showing a much better growth on topline and EBIT.

The company makes lighting products, switchgears, cables, fans, modular switches and home appliances, and it has 14 factories in India and six globally. It owns brands including Crabtree, Sylvania, Concord and Standard. The company’s numbers do show the pressure in the economy as over 25% of its business comes from the industrial sector. Sylvania continues to do well  and has turned profitable and though Europe remains challenging, it expects this company to give a return of 7-8% on the operational level. The company is laying more stress on its domestic consumer business and over the next 4-5 years expects it to contribute around 15% to the topline.