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Havells India tumbles after Q2 PAT drops 7% to Rs 302 cr

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Capital Market
Last Updated : Oct 21 2021 | 10:16 AM IST

Havells India fell 6.58% to Rs 1312.90 after the company's consolidated net profit declined 7.34% to Rs 302.39 crore on 31.65% rise in net sales to Rs 3238.04 crore in Q2 September 2021 over Q2 September 2020.

The company's profit before tax fell 4.77% to Rs 404.79 crore in Q2 September 2021 over Q2 September 2020.

On a standalone basis, Havells India's net profit declined 7.18% to Rs 301.56 crore on 31.38% rise in net sales to Rs 3221.03 crore in Q2 September 2021 over Q2 September 2020.

EBIDTA rose 6% year-on-year to Rs 444 crore in Q2 September 2021. EBIDTA margin tumbled to 13.7% in Q2 September 2021 compared with 17.2% in Q2 September 2020.

The company said it reported healthy growth across business verticals. It added that increase in commodity cost remained unabated with severe escalation in a rather short period. Price increase have been staggered creating a lag affect on margins.

"However, we maintain a positive outlook on demand growth which could support margin as well," the company said.

The company's total expenses rose 35.28% to Rs 2,850.85 crore during the period under review.

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Revenue from the switchgears segment was Rs 442.60 crore, up 19.53% as against Rs 370.27 crore in the July-September quarter a year ago. Switchgear growth is reflecting real estate upcycle, the company said.

Its cables segment revenue was at Rs 1,143.98 crore, up 45.79% compared to Rs 784.67 crore of Q2 September 2020. Havells' revenue from lighting and fixtures in Q2 FY21 was up 33.64% to Rs 353.56 crore, as against Rs 264.57 crore in the corresponding quarter of the previous year.

While electrical consumer durables (ECD) was up 25.62% to Rs 728.43 crore as against Rs 579.87 crore in the year-ago period.

Revenue from Lloyd Consumer, a company which Havells had acquired in 2017, was up 23.48% to Rs 346.30 crore during the July-September quarter as against Rs 280.44 crore.

The board has declared an interim dividend of Rs 3 per equity share. The record date is fixed on 28 October 2021.

Havells India is a leading fast moving electrical goods (FMEG) company and a major power distribution equipment manufacturer with a strong global presence.

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First Published: Oct 21 2021 | 9:17 AM IST

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