Havells Announces Q2 FY-23 Results: Revenue Up 13.63%, PAT Plummets 38.16% YoY
Havells India Limited [NSE: HAVELLS, BOM: 517354], has announced its financials for the quarter ended 30th September 2022.
Havells’ Standalone Financial Performance During Q2 of FY-23
Havells reported Rs. 3,668.94 crore as its standalone revenue from operations for the second quarter of the current fiscal.
Standalone Profit After Tax (PAT) earned by the company during this period stood at Rs. 186.87 crore.
Havells’ Consolidated Financial Performance
YoY Comparison of Havells’ Q2 Financials: Q2 FY-23 vs. Q2 FY-22
Year-over-Year (YoY) comparison of Havells’ consolidated financials reveals an increase of 13.63% in the company’s revenue from operations. The FMEG giant reported Rs. 3,679.49 crore as its revenue earned during Q2 of FY-23, as against the Rs. 3,238.04 crore revenue clocked during Q2 of the previous fiscal.
Consolidated Q2 PAT of the company slumped by 38.16% to Rs. 187.01 crore in FY-23 from Rs. 302.39 crore during FY-22.
QoQ Comparison of Havells’ Financial Results: Q2 FY-23 vs. Q1 FY-23
Havells’ revenue from operations fell by 13.31% on a Quarter-over-Quarter (QoQ) basis, from Rs. 4,244 .46 crore earned during the quarter ended 30th June 2022.
PAT of the company also exhibited a downward trend, decreasing by 23.09% from the Rs. 243.16 crore profit reported for Q1 of 2022-23.
Havells’ Segment-Wise Q2 FY23 Revenue Increases YoY Across all Businesses
Switchgears: The company’s switchgear business exhibited a YoY revenue growth of 8.86%. In FY-23, Havells reported Rs. 487.90 crore as its Q2 switchgear segment revenue. This figure stood at Rs. 448.17 crore for the corresponding period during the previous financial year.
Cables: The Cables segment contributed the most to the company’s consolidated revenue from operations during the quarter ended 30th September 2022, accounting for a 36.95% share.
Havells’ Q2 cable segment revenue reflected a YoY growth of 18.83%, increasing to Rs. 1,359.39 crore in Q2 FY-23 from Rs. 1,143.98 crore in FY-22.
Lightings & Fixtures: Revenue from Havells’ Lightings & Fixtures business registered an increase of 11.89% YoY, to Rs. 401.75 crore in Q2 of FY-23 from Rs. 359.06 crore during Q2 of FY-22.
Electrical Consumer Durables: This segment, mostly comprising Havells India’s FMEG products, was responsible for 21.02% of the company’s consolidated revenue from operations during Q2 of FY-23.
Electrical Consumer Durables contributed Rs. 773.47 crore to Havells’ revenue during the quarter ended 30th September 2022, as against Rs. 729.36 crore for the corresponding quarter in FY-22. This reflects a slight increase of 6.05%.
Lloyd Consumer: Havells’ Lloyd brand clocked a revenue of Rs. 419.79 crore during the second quarter of 2022-23, as compared to Rs. 346.30 crore in Q2 of the previous fiscal. This represents an upward trend with a healthy growth of 21.22% YoY.
Others: This segment consists of Havells India’s other products such as motors, water pumps and purifiers. On a YoY basis, Q2 revenue from this segment grew by 12.32%, to Rs. 237.19 crore in FY-23 from Rs. 211.17 crore earned during FY-22.
Summary of Havells India’s Financial Performance
As per Havells India, demand during the second quarter of the current financial year has been stable, albeit slightly sluggish.
However, the margins of the company were affected mostly on account of full absorption of high-cost inventory, in the backdrop of falling raw material prices. This effect was the most noticeable on the company’s cable business, and on its Lloyd sub-brand.
Further, Havells stated that Electronics Consumer Durables revenue was affected by the change in energy efficiency norms in August 2022, due to which it had to de-stock electrical fans. The company expects revenue from this segment to stabilise by Q3 of the ongoing financial year.
Relying on long-term trends, the company expressed that cable margins would improve.
Lloyd Sub-brand Facing Losses Since Q2 FY22
An analysis of the company’s margins from Lloyd reveals that the sub-brand has been reporting losses since the second quarter of the previous fiscal. Havells incurred a Rs. 83.99 crore loss on account of Lloyd in Q2 of the current fiscal. During the quarter ended 30th June 2022, Lloyd was responsible for a Rs. 56.31 crore loss to Havells.
About Havells India Limited: Havells India Limited is a Noida-based company, which is one of the biggest players in the Indian FMEG market. The company, which was founded in 1958, reported a turnover of Rs. 13,889 crore for FY-22. Its product range includes products such as Industrial & Domestic Circuit Protection Switchgear, Modular Switches, Cables & Wires, Fans, Power Capacitors, and Luminaires for Domestic, Commercial & Industrial applications, Water Heaters, Motors and Domestic Appliances.