Sylvania registers profit after successful completion of restructuring; Havells consolidated net sales up 6% (15% on comparable basis) during Q2 FY11; net profit turns positive
Havells India Limited, one of the largest & India's fastest growing electrical and power distribution equipment manufacturer today announced its financial results for the second quarter ended 30th September, 2010 (Q2 FY11).
Net sales on consolidated basis increased by 6% to Rs. 1401 crore during Q2FY11 from Rs. 1319crore in Q2FY10, on account of sustained growth in the domestic business segments and robust performance of the company’s subsidiaries, especially Sylvania. EBIDTA increased by 36% to Rs. 116crore in Q2FY11 from Rs. 85crore in Q2FY10. The company reported positive net profit of Rs.71crore in Q2 FY11 as against loss of Rs. 14 crores in Q2 FY10. The consolidated numbers include the performances of Havells India (the parent company) and its two subsidiaries (Standard Electrical and HavellsSylvania).
The quarter under review proved to be eventful for HavellsSylvania, the European subsidiary of the company. The subsidiary, for the first time since its acquisition (in April 2007), sprung back to black with a net profit of Euro 1.3mn (Rs. 8.1crore) in Q2FY11 from a loss of Euro 10.2mn (Rs. 71 crore) in Q2FY10. The net sales for the subsidiary increased by 12% to Euro 117.7 mn from Euro 105.6 mn in Q2FY10. However, in wake of improved efficiencies and cost control, EBIDTA increased to Euro 5.5mn (Rs. 33.4crore) in Q2FY11 from Euro 0.6 mn (Rs. 3.9 crore) in Q2FY10. The company’s EBIDTA margin and net margin for Q2FY11 were 4.7% (0.57% in Q2FY10) and 1.1% respectively.
On a standalone basis, net sales of Havells India increased by 16% to Rs. 690 crore in Q2FY11 from Rs. 596 crore in Q2FY10, led by improved performance of consumer division. Net profit for the quarter increased by 8% to Rs. 58.6 crore from Rs. 54.2 crore while EBIDTA decreased marginally to Rs. 77.3 crore in Q2FY11 from Rs. 78.1 crore in Q2FY10, on account of higher input cost.
Reflecting on theperformance, Mr. Anil Gupta, Joint Managing Director, Havells India, said:“It is heartening to see our dedicated efforts over the past one year translating into numbers for the quarter. Our organization-wide restructuring process concluded successfully, resulting in higher efficiency and streamlined operations. The turnaround of our subsidiary - HavellsSylvania not only propelled the company’s consolidated growth but also enabled us to create a scalable business model, posed to deliver sustained growth and create shareholder wealth consistently. We continue to strengthen our businesses, widen our reach, rationalize our costs and improve our product profile to sustain the growth achieved during the quarter.”
The company’s net sales on consolidated basis for H1 FY11 increased by 5% to Rs. 2773crore from Rs. 2627crore in H1FY10. EBIDTA for the first half registered an increase of 44% to Rs. 235crore, while the net profit was positive to Rs.127crore.
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About Havells India Limited
Havells India Limited alongwith its subsidiary Sylvania BV is a leading domestic electrical and a global lighting player. It has offices in 52 countries with 94 branches and 8000 professional with 11 globally benchmarked manufacturing facilities. While Havells is one of the largest & India's fastest growing electrical and power distribution equipment manufacturer & Sylvania on the other hand is one of the world’s largest and premium lighting manufacturers brand with world-wide business operations.
Since the acquisition of Sylvania in 2007, Havells entrepreneurial culture was well integrated with the local Sylvania management & together ( Havells& Sylvania ) are now a formidable force in the electrical & lighting field globally. Owns some of the prestigious global brands like Crabtree, Sylvania, Concord, Luminance, &Linolite. Havells Manufactures & markets products ranging from Industrial & Domestic Circuit Protection Switchgear, Cables & Wires, Motors, Fans, Electric Water Heaters, Power Capacitors, CFL Lamps, Luminaries for Domestic, Commercial & Industrial applications & Modular Switches covering the entire gamut of household, commercial and industrial electrical needs. Havells is a name synonymous with excellence and expertise in the electrical industry. Its 20000 strong global distribution network is prompt to service customers.
The company has acquired a number of International certifications, like BASEC, CSA, KEMA, CB, CE, ASTA, CPA, SEMKO, SIRIUM (Malaysia), SPRING (Singapore), TSE (Turkey), SNI (Indonesia) and EDD (Bahrain) for various products. Today, Havells and its brands have emerged as the preferred choice of electrical products for discerning individuals and industrial consumers both in India and abroad.