Havells India Q4 results: Profit up 16% on high demand for air conditioners

The company reported a profit of Rs 518 cr in the three months ended March 31, nearly 16% higher than a year ago

Home appliances and electrical goods maker Havells India reported fourth-quarter profit above analysts' estimates on Tuesday, helped by demand for air conditioners ahead of the summer season.

The company reported a profit of 5.18 billion rupees ($60.8 million) in the three months ended March 31, nearly 16% higher than a year ago. Analysts, on average, were expecting a profit of 4.67 billion rupees, as per data compiled by LSEG.

Its revenue from operations rose 20.2% to 65.44 billion rupees, beating analysts' estimates of 62.32 billion rupees.

KEY CONTEXT

Consumers tend to spend more on buying or upgrading air conditioners ahead of India's summer months, which can start as early as April and extend late into July, with temperatures rising above 40 degrees Celsius in some parts of the country.

Sales of the company's appliances brand Lloyd, which includes air conditioners and washing machines, rose nearly 40% in the quarter. Lloyd earns the majority of its revenue from air conditioners.

Additionally, stabilization in price of key raw material copper and capacity expansion helped the company's biggest segment wires and cables, where revenue grew 21.2% year-on-year.