Havells India commences commercial production of cables at new facility in Tumakuru, Karnataka

Havells said that in order to cater to the potential demand for cables, the firm decided to further expand its cable manufacturing capacity in the same facility at Tumakuru, from existing 3.48 lakh kilometres per annum to 4.62 lakh kms per annum, with an additional investment of around ₹450 crore.

“This investment is primarily towards augmentation of our capacity for higher size cables. The production through expansion at Tumakuru is expected to commence by September 2026. The entire investment will be funded through internal accruals,” it said.

Meanwhile, during the first quarter of fiscal year 2025, net revenue rose 20% year-on-year (YoY) to ₹5,798 crore. Earnings before interest, tax, depreciation, and amortisation (EBITDA) rose 43% to ₹576 crore. Net profit rose 43% YoY to ₹411 crore.

Havells said that strong summer helped drive growth and industrial and infrastructure segment continued to perform well, albeit facing some impact due to elections. The company said demand outlook looks positive with some uptick in consumer trends. “Investment in brand building continues with 3% of revenue spent on advertising and sales promotion,” the firm stated.

Havells’ switchgears segment revenue grew 6% YoY to ₹576 crore during the quarter while cables segment revenue rose 2% YoY to ₹1,521 crore. Lighting & Fixtures segment revenue rose 5% YoY to ₹386 crore while electric consumer durables revenue rose 20% YoY to ₹1,055 crore.

The power cables segment witnessed a healthy growth despite capacity constraints but wires’ revenue was impacted by channel destocking with sharp decline in commodity price in June 2024.

Strong volume growth was seen in lighting, while price deflation continued to erode volume gains, the firm said.

The firm said robust performance was seen by fans and small domestic appliances, supported by favourable season and premiumisation with new launches.

Shares of the company rose 40% since the beginning of the year. The stock has registered similar gains in the last one year.