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Havells Financial Results Q3 FY23: YoY PAT Dips 7.29%

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Havells India Limited [NSE: HAVELLS, BOM: 517354], an Indian manufacturer of cables and Fast Moving Electrical Goods (FMEG), has announced its financial results for the third quarter of FY-23.

Havells India’s Q3 FY-23 Standalone Financial Figures

For the quarter ended 31st December 2022, Havells stated Rs. 4,119.71 crore as its standalone revenue from operations.

The company’s standalone Profit After Tax (PAT) for the period stood at Rs. 283.94 crore.

Havells’ Consolidated Q3 FY-23 Performance: Steady Revenue Growth, but Dip in Profitability

YoY Comparison of Havells’ Consolidated Financials: Q3 FY-23 vs. Q3 FY-22

During the third quarter of the ongoing fiscal, Havells India reported a consolidated revenue of Rs. 4,127.57 crore from its operations, which is 12.65% higher than the company’s revenue of Rs. 3,664.21 crore clocked in Q3 of FY-22.

Comparison of Havells India’s Financials: Q3 FY22 vs. Q3 FY23 vs. Q2 FY23

Havells India earned a consolidated PAT of Rs. 283.52 crore in Q3 of the current fiscal, against Rs. 305.82 crore during Q3 FY-22. Thus, there has been a decline of 7.29% in the company’s profit on a Year-over-Year (YoY) basis.

Havells India’s QoQ Financial Performance: Q3 FY-23 vs. Q2 FY-23

On a Quarter-over-Quarter basis, Havells India’s revenue from operations grew by 12.18% from Rs. 3,679.49 crore that the company reported in Q2 of the ongoing fiscal.

PAT of the company grew remarkably by 51.61% from Q2 to Q3 of FY-23. In Q2 of the 2022-23 financial year, Havells clocked a PAT of Rs. 187.01 crore.

Havells’ Segment-Wise Consolidated Financials Q3 FY23 / Q3 FY22

Revenue in Rs. Cr.

Havells India’s Segment-wise Revenue Comparison: Q3 FY22 vs Q3 FY23

Switchgears: The Switchgears segment of Havells’ portfolio saw a meagre 3.70% growth YoY in revenue to Rs. 514.33 crore in Q3 of FY-23 from Rs. 495.97 crore earned during the same quarter in the previous fiscal.

Cables: Havells India’s Cables business contributes the most to its overall revenue. In FY-23, this segment brought in 34.21% of the company’s revenue from operations.

On a YoY basis, the Cables segment revenue shot up by 17.11% to Rs. 1,412.14 crore in the third quarter of the current fiscal, compared to Rs. 1,205.83 crore for the corresponding period in 2021-22.

Lighting and Fixtures: The company’s Lighting and Fixtures segment saw a nearly flat trend in Q3 revenue from FY-22 to FY-23, increasing marginally by 2.48%. For the quarter ended 31st December 2022 Havells earned Rs. 423.17 crore from its Lighting and Fixtures business as against Rs. 412.92 crore clocked during Q3 of FY-22.

Electrical Consumer Durables: On a YoY basis, Havells India’s Q3 revenue from this segment grew slightly by 4.49% to Rs. 935.74 crore in FY-23 from Rs. 895.53 crore in FY-22.

Lloyd Consumer: Havells’ Lloyd sub-brand exhibited a heathy 29.91% YoY growth in revenue to Rs. 610.32 crore during Q3 of FY-23 from Rs. 469.82 crore in Q3 of FY-22.

Others: This segment consists of Havells India’s other products such as motors, water pumps and purifiers. Q3 revenue from this segment grew by 25.92% from FY-22 to FY-23, increasing to Rs. 231.87 crore from Rs. 184.14 crore.

Summary of Havells India’s Financial Performance

Havells India stated in an information update about its Q3 FY-23 results that the company’s revenue growth was predominantly driven by volume of sales. Demand in the B2B segment was high, even as the customer demand was fairly moderate during the quarter ended 31st December 2022.

Margins of the company improved on account of stable raw material prices in Q3 of the current financial year. However, in case of Lloyd, margins were under pressure owing to market competition and high-cost inventory.

Havells expects Lloyd’s margins to get better during the closing quarter of FY-23.

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 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.