Havells: Strong show in core operations seen as key driver of growth

Strong show in core operations, traction in Lloyd's business can drive 20-25 per cent annual growth in earnings in next two years

Havells kicked off FY19 on a strong note, clocking 40 per cent revenue growth during the June quarter (Q1), led by its electrical consumer durables (ECD) segment. While the Lloyd air-conditioners (AC) business also surprised positively, others supported growth, too. With healthy growth across businesses, analysts remain positive on Havells.

The Lloyd business (acquisition completed in May 2017) grew 14 per cent on a like-to-like basis, commendable in a quarter affected by unseasonal rain, equally aided by volume growth and price hikes. Margins fell sequentially, owing to adverse foreign exchange movement. Yet, analysts remain positive on Lloyd, given its upcoming