Havells India dips 9% on margin disappointment in Sept quarter

In Q2, Ebitda margin declined 338 bps year-on-year to 13.8 per cent, mainly due to higher raw material costs

Shares of Havells India dipped 9 per cent to Rs 1,279 on the BSE in Thursday’s intra-day trade on profit booking after the consumer electronics company reported a weak operational performance in the July-September quarter (Q2FY22).

The company’s earnings before interest, tax, depreciation and amortisation (Ebitda) margin declined 338 bps year-on-year (YoY) to 13.8 per cent, mainly due to higher raw material costs. Net profit was down 7 per cent YoY at Rs 302 crore during the quarter.

Havells India said the contribution margins have sustained on a quarter-on-quarter (QoQ) basis though cost pressure remains significantly high. "Continued volatility in commodity prices