Havells Q2 earnings: Net profit rises 11% to ₹353 crore, EBITDA jumps 30%

Havells, the country's leading electrical equipment and home appliances maker, on Thursday, October 22, reported a standalone net profit of ₹353 crore in the second quarter of current financial year, marking an increase of 11% from ₹317 crore in the same period last year.

The company's revenue from operations advanced 35% to ₹6,417 crore at the end of September quarter from ₹4,767 crore in the corresponding period last year.

Revenue from switchgears business rose 31% to ₹782 crore, cable business revenue rose 48% to ₹2,999 crore, revenue from lightings segment rose 7% to ₹449 crore, electrical consumer durables revenue came in at ₹1,072 crore and Lloyd's revenue advanced 28% to ₹614.50 crore.

The Noida-based company reported stable operational performance as its earnings before interest, taxes, depreciation, and amortization (EBITDA) also known as operating profit advanced 30% to ₹576 crore, but its EBITDA margin contracted by 30 basis points to 8.98%.

The company in an investor presentation said that consumption remained steady despite high inflation in the second quarter.

Strong switchgear growth was supported by domestic demand pickup and recovery in exports post disruption in the first quarter.

Cables growth led by commodity-linked price increases and mix towards higher sized cable and lighting saw pickup with price stabilization, Havells said in an investor presentation.

Cables margins were impacted with volatility in aluminium prices in the first half of current financial year. Contribution margin for the segment came in at 15%, in line with long term average, Havells said.

Rest of the portfolio contribution margin remained stable annually, renewables margins improved with better product mix, while lighting margins were soft due to certain project orders and Lloyd contribution margins remained subdued with raw material inflation and under-absorption, Havells added.

Havells shares rose 1.76% to an intraday high of ₹1,090 after its earnings announcement.