Havells Q3 sales, profit up 8%

Havells India’s net profit rose 8% in December quarter, FY2016, to Rs 171.2 crore from Rs 159.1 crore on a year-on-year basis. During the period, the electronic firm’s net revenue went up to Rs 1,334.5 crore from Rs 1,247.4 crore a year ago – 8% higher.

Slowdown in global demand impacted the company’s revenue growth as exports fell 36% compared to an 11% increase in domestic sales. Sharp currency devaluation in Africa impacted growth of export in those countries. “Efforts are in place to become more competitive and to look out for newer geographies as alternative markets”, the company told BSE in a filing.

In the quarter, Havells’ earnings before interest, taxes, depreciation and amortisation (Ebitda) margins fell to 13.5% from 14.3% during the year-ago period due to surge in employee costs and advertisement and promotional expenses – rose 21.3% and 75%, respectively.

While, its light-emitting diode (LED) lighting division sales doubled, industrial cables and domestic cables grew by 29% and 9%, respectively.

Havells’ share fell 0.61% at the end of the day to Rs 300 in the Bombay Stock Exchange (BSE) while the 30-index Sensex grew marginally (by 0.03%) to end at 24,492.39.