Havells net down 11% to Rs 122 cr

In FY15, its consolidated net earnings fell 14 per cent to Rs 385 crore from Rs 446 crore in the previous year

Electrical equipment company Havells India posted a 11% year-on-year (y-o-y) drop in net profit at Rs 122 crore in the March 2015 quarter. The firm had posted Rs 137 crore profit in the year-ago quarter. Havells' standalone net sales grew 3%, y-o-y, from Rs 1,300 crore to Rs 1,340 crore.

In FY15, its consolidated net earnings fell 14% to Rs 385 crore from Rs 446 crore in the previous year. According to the company, its profitability was impacted due to "an increase in pension liability in Sylvania" operations.

The firm's net sales rose 4.6% to Rs 8,526 crore in FY15 from Rs 8,150 crore in the year before, while its total expenses surged 5.7%.

However, on a standalone basis, net revenue from the company's Sylvania operations grew to 443.1 million euros for FY15 compared to 440.1 million euros in FY14.

According to Havells, in FY15, it consistently focused on reducing debt while bettering profitability in Sylvania. The company posted Rs 469 crore net profit from its Indian operations alone. During FY15, Havells' net sales from its domestic operations went up 11% to Rs 5,239 crore from Rs 4,720 crore in FY14.

Anil Rai Gupta, chairman and managing director of Havells India, said: "Our growth this year has been almost the same as last year. We grew 11% and the macro environment has impacted both investment and industrial demand. During the year, we have focused on strengthening our connect with channel partners including last-mile retailers and product portfolio rationalisation. We continue to drive business with cost efficiencies, margin improvement and cash conservations."

Although the company's earnings before interest, tax, depreciation and amortisation from its Indian operations has grown 9% during the year, margin fell to 13.3% from 13.6% in 2013-14. The cable division, which contributed Rs 2,190 crore during FY15 - the highest among Havells' existing business divisions - grew 14%, followed by the switchgear division contributing Rs 1,279 crore to its net sales. However, the electrical goods company's electronic and electrical consumer durables segment grew the most - by 20% to Rs 1,028.3 crore in FY15 from Rs 853.4 crore in FY14.

"We see some movement in the economic activity and expect investments in infrastructure and industrial areas to grow. Moreover, the government's focus on adopting newer and efficient technologies like LED will give impetus to our growth," added Gupta.

Havells has announced a 300% dividend per share with a face value of Rs 1 each.