Havells feels the heat as consumer business slows, Q4 results disappoint

Q4 sales, profit came below estimates; improving growth momentum crucial for stock

Havells’ March quarter (fourth quarter or Q4) performance came below expectations, largely due to soft demand for its cooling products. The consumer business of Lloyd, which Havells acquired in February 2017, saw a decline of 9 per cent, owing to a delayed summer season. 

Even the slower growth of the fan business affected growth of Havells’ electrical consumer durables (ECD) segment. The ECD business’ growth of 9 per cent year-on-year (YoY) was lower, compared to 36.5 per cent YoY in the first nine months of 2018-19. Since it has remained a strong growth driver — contributing about a fourth to Havells’