Fast-moving electrical goods (FMEG) manufacturer Havells India on Saturday reported a 16 per cent decline in its profit to Rs 177 crore during the first fiscal quarter ended June due to sluggish growth key segments like cables, lighting, and switch gears.
In Q1 of FY19, it had reported a profit of Rs 211 crore. Consolidated revenue in Q1 FY 20 grew by 4.5 per cent to Rs 2,717 crore with electrical consumer durables business showing a growth of 24 per cent.
The growth was marginal in the rest of the segments. Lighting and fixtures grew by 5 per cent, cables by 4 per cent and switch gears by half a per cent.
"Switchgears being related to construction have been subdued owing to realty and project slow down. Industrial cable and professional lighting demand impacted by the delay in fresh government projects since elections," Havells said in a statement.
"Electrical consumer durables delivered a superior performance amid tepid market scenario. Apart from fans, there is high growth from small domestic appliances, water heater, water purifier, and air coolers," it added.
AC offtake recovered from Q4 albeit continued to be soft. The steep decline in LED panels has caused overall lower sales for Lloyd, it said.
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