Lower margins weigh on Havells' Q1 performance as input, staff costs surge

Even as the trend is seen continuing in Q2 before reversing in the second half, analysts are positive on the company

Domestic appliances and household electrical goods major Havells declared strong year-on-year (YoY) revenue expansion but lower margins in the first quarter of the 2022-23 financial year (Q1FY23). Revenues grew by 63 per cent YoY to Rs 4,230 crore (the 3-year compounded annual growth rate or CAGR is 16 per cent, which indicates revenues have grown compared to the pre-Covid-19 levels).
 

Lloyd (which Havells acquired in 2017-18) delivered revenue expansion and across segments like switchgear, lighting, cable & wire (C&W), revenue expansion occurred on the YoY basis. However, QoQ (quarter-on-quarter) revenues were down 4 per cent – there is