Havells tanks as import duty rises

Havells India is down in the red today morning, going down 3% to Rs.628 levels. Its 52-week low stands at Rs.454.

Various analysts and brokerages have opined that Havells would be one of the worst affected due to the current import duty hike. They are concur that the duty hikes will hurt its earnings in H2FY19 and the impact of this hike can be mitigated only after its AC plant goes on stream in March 2019.

The company imports 70% of Lloyds requirement and will now to soon shift this to domestic manufacturing. It would have no option but to pass on the hike in import duty to consumers and this in turn could hurt the margins.

The white goods sector makes its best money in the ongoing festive season and that is expected to get impacted.