Havells Q2 results disappoint; slowdown in real estate, infra hits growth

Higher competitive intensity in LED panels impacted growth of the acquired Lloyd's business, which slipped into losses at the operating level

Havells performance for the September quarter (Q2) disappointed, both in the core consumer electrical as well as the acquired Lloyd’s business. Demand deterioration, extending from real estate to industrial and infrastructure segments, impacted growth in the core segments. And, the outlook isn’t encouraging too.

The switchgears and lighting & fixtures segment, which contribute about 30 per cent to overall revenue, saw a 1-2 per cent year-on-year decline in sales. Though the consumer durables business (a fourth of revenue) provided support with 15 per cent growth and the cables (over a third of revenue) grew by 7 per cent year-on-year, sales