Havells Q2 net up 82% to Rs 326 crore, sales up 10% at Rs 2,459 crore

Consumer electrical goods maker Havells India Ltd on Thursday reported an increase of 81.97 percent in its consolidated net profit at Rs 326.36 crore for the second quarter ended September 2020.

The company had posted a consolidated net profit of Rs 179.34 crore in the July-September quarter a year ago, Havells said in a regulatory filing.

Its revenue from operations was up 10.16 percent to Rs 2,459.49 crore during the period under review, as against Rs 2,232.65 crore in the corresponding period last fiscal, the company said.

"We are encouraged with the pace and extent of demand recovery. Consumer & Residential demand is robust, however Industrial & Infrastructure sales remain sluggish though trending towards a gradual recovery,” Havells India Chairman and Managing Director Anil Rai Gupta said.

He further noted that "our initiatives in rural, online and channel engagement have well delivered,” he added.

Havells total expenses were at Rs 2,113.92 crore, as against Rs 2,055.55 crore, up 2.83 percent.

Revenue from switchgears segment was Rs 370.27 crore, up 1.77 percent as against Rs 363.83 crore in the year-ago period.

However, revenue from its cables segment was down 4.46 percent to Rs 784.67 crore, as against Rs 821.31 crore of Q2/FY 2019-20.

Havells’ revenue from lighting and fixtures in the July-September quarter was up 6.50 percent to Rs 272.30 crore, against Rs 255.67 crore in the corresponding quarter of the previous year.

While Electrical consumer durables (ECD) was up 18.29 percent to Rs 579.87 crore, as against Rs 490.21 crore in the year-ago period.

"Consumer and Residential portfolios registered mid-teens growth across segments, ECD being the bellwether. Consumer lighting was beneficiary of Rural Vistaar and deeper distribution,” Havells said in its post result investor’s presentation.

Revenue from Lloyd Consumer, a company which Havells had acquired in 2017, was up 55.84 percent to Rs 280.44 crore during July-September quarter, as against Rs 179.95 crore.

"ACs led the growth in Lloyd, supported by washing machines and recently launched refrigerators,” the company said.

Over the ongoing festival season, Gupta said it seems to be evolving "decently”, though COVID development needs to be observed for sustenance.

"We welcome the recent impetus to Aatmanirbhar Bharat’ with prohibition on AC import. It augurs well for integrated manufacturers like Lloyd, he said.