Havells soars after stellar Q1 performance

Havells India jumped 6.61% to Rs 1176.30 after the company's standalone net profit surged 269.9% to Rs 234.30 crore on 75.7% increase in net sales to Rs 2,598.20 crore in Q1 FY22 over Q1 FY21.

As compared to Q4 FY21, the company's net profit and net sales have declined by 22.5% and 22%, respectively.

Profit before tax in Q1 FY22 stood at Rs 314.77 crore, up by 266.2% from Rs 85.95 crore in Q1 FY21.

EBIDTA improved by 169% to Rs 353 crore in Q1 FY22 compared with Rs 131 crore in Q1 FY21. EBIDTA margin was at 13.6% as on 30 June 2021 as against 8.8% as on 30 June 2020.

Havells said that demand scenario remains resilient though there are local disruptions owing to lockdowns or scattered market timings. Q1 sales was impacted due to ferocious second COVID wave. The growth YoY was robust albeit on a lower base. Inflationary trend in the commodity continues, price increases being effected with a time lag.

Revenue from Switchgears business was at Rs 374 crore (up 96% YoY), revenue from Cable business was at Rs 807 crore (up 75% YoY), Lighting & Fixtures business revenue was at Rs 210 crore (up 52% YoY), revenue from Electrical Consumer Durables segment was at Rs 576 crore (up 91% YoY) and Other revenue was at Rs 137 crore (up 68% YoY) in the first quarter.

Lloyd revenue increased by 61% to Rs 494 crore in Q1 FY22 from Rs 306 crore in Q1 FY21. The company said that Lloyd disproportionately impacted with Covid striking in peak summer season.

Havells said that overall contribution margins were maintained sequentially despite commodity headwinds and lower sales. Contribution margins are derived after deducting material cost, manufacturing variables, direct selling variables and depreciation from the net revenue.

Margins in lighting, ECD and Lloyd divisions were impacted by under absorption of fixed expenses due to lower production volumes, it added.

Havells India is a leading fast-moving electrical goods company with presence across India. Its product range includes industrial & domestic circuit protection switchgear, cables & wires, motors, fans and power capacitors.

On a year-to-date (YTD) basis, the stock has zoomed 28.36% while the benchmark Sensex has added 10.40% during the same period.

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