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Havells India surges 6% on good Q3 results

The stock gained 6% to Rs 720, trading close to its all-time high level of Rs 729 touched September 3, 2018, in intra-day trade.

SI Reporter  |  Mumbai 

Havells India
Havells India

Shares of surged 6 per cent to Rs 720 apiece on the BSE after the company reported a better-than-expected consolidated net profit at Rs 196 crore, on the back of strong revenue growth, in December quarter (Q3FY19). The company had a profit of Rs 194 crore in year-ago quarter.

Net revenue during the quarter under review increased by 28 per cent to Rs 2,518 crore against Rs 1,966 crore in the corresponding quarter of previous fiscal. EBITDA (earnings before interest, tax, depreciation and amortization) stood at 11.5 per cent.

Analysts on an average expected a profit of Rs 188 crore on revenue of Rs 2,274 crore for the quarter. The brokerage firm expected operating margin to decline 60bps year-on-year to 12.7 per cent.

“The government-led initiative in electrification and infrastructure aiding switchgear and cable business. The festive season in enabled growth in small domestic appliances, water heaters continue to gain market share, overall ECD portfolio sustained growth,” said.

The margins improved sequentially and sustained at normal levels. The electrical consumer durables (ECD) contribution impacted due to delay in passing increased input cost. The company expects margins to improve during Q4 in line with the yearly average. The Lloyd’s margins impacted due to increase in material cost and Rupee depreciation, it added.

At 02:33 pm; was trading 5 per cent higher at Rs 709 on the BSE, as compared to 0.44 per cent decline in the S&P BSE Sensex. The stock was quoting nears to its all-time high level of Rs 729 touched September 3, 2018, in intra-day trade.

The trading volumes on counter jumped nearly six-fold with a combined 5.07 million equity shares changed hands on the NSE and BSE so far.

First Published: Tue, January 22 2019. 14:38 IST