Q2 Results for Havells India: Poor operational performance lowers share price
On Thursday, October 17, Havells India Ltd.’s stock dropped as much as 7.5% after the company’s operating results fell short of forecasts.
In comparison to the same quarter last year, the cables and wires manufacturing company’s net profit climbed 7.7% to ₹268.2 crore. The number, nevertheless, fell short of what experts who were following the business had predicted. According to the CNBC-TV18 survey, analysts’ estimations were ₹328 crore.
Havells’ September quarter topline increased by 16.4% to ₹4,539.3 crore, which was slightly more than the ₹4,332 crore predicted by the CNBC-TV18 poll.
At ₹374.6 crore, earnings before interest, tax, depreciation, and amortization were unchanged from the same quarter the previous year. The amount is far less than the ₹459 crore CNBC-TV18 poll.
Compared to 9.6% year over year, the EBITDA margin for the quarter dropped 140 basis points to 8.2%, far below the 10.6% forecast.
In its investor presentation, the business emphasized how contribution margins were affected by the significant volatility of material costs, especially in the cables area. Additionally, they noted that the change in the holiday season caused advertising expenditures to increase into the September quarter.
However, Lloyd reported a consistent performance for the Havells unit in a non-seasonal quarter. From 3.9% in the previous year and 13.2% in the June quarter, its contribution margin increased to 14%. Additionally, the segment’s revenue rose 19% from ₹493 crore to ₹587 crore.
Following the results report, Havells India’s stock is down 7.5% and is now trading at ₹1,793.85. So far in 2024, the stock has increased by 35%.
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