Cost increases, GST dent Havells profitability

Promotional and staff expenses surge; lower off-take hurts sales in Q1

Havells India witnessed a higher-than-anticipated impact of goods and services tax-(GST) led disruption on its sales in the June quarter. Revenue growth, excluding the Lloyds business, came at 9 per cent. Accounting for 50 days of Lloyds revenues after acquisition, Havells' net revenue grew 27 per cent year-on-year at Rs 1,860 crore, short of a consensus estimate of Rs 2,020 crore.

The company claims uncertainty, lack of clarity and a general regulatory fear led to a significant decline in primary off-take by channel partners. Growth was impacted across segments, except cables. The switchgears segment's revenue declined 4 per cent year-on-year