High raw material prices, delay in hiking prices hit Havells' Q2 profit

High raw material prices, weak rupee and lag effect to pass on increased costs weighs margins

Even as revenue growth was robust and in line with expectations, Havells’ profitability was muted in the September quarter (Q2). Volatility in raw material prices, rupee depreciation, and a lag in taking price hikes impacted margins. 

However, the pressure on margins should ease soon.

There are no issues on the top line front. Havells’ net standalone revenues at Rs 19.33 billion, excluding the acquired business of Lloyds, grew 28 per cent YoY, while total revenues at Rs 21.91 billion came a shade ahead of Bloomberg consensus estimates of Rs 21.72 billion. Earnings before interest, tax, depreciation and amortisation (Ebidta), at Rs 2.49