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Havells’ Q1 FY-24 Financials: Revenue Up 14%, PAT Soars 18% YoY

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Havells India Limited [NSE: HAVELLS, BOM: 517354], a major Indian manufacturer in the wire & cable and FMEG space, has announced its financial results for the quarter ended 30th June 2023.

Havells CMD – B2C Demand Affected by Rains, Cable & Switchgear Segments Expected to Grow

During the company’s earnings call for its Q1 FY-24 financial performance, Mr. Anil Rai Gupta, Chairman and Managing Director, Havells India Ltd., said, “Overall, I would say consumer demand has been muted, partly due to unseasonal weather, which impacted the B2C business. Demand lately seems to be improving. B2B and Lloyd have grown well. Deflationary trend in LED business has impacted consumer lighting revenues. However, there is healthy growth in professional lighting.

Further, while responding to a question about cable and switchgear demand, Mr. Gupta added, “We see that the construction cycle has also seen some revival. So in the next 12 to 18 months, we should see good growth in both the segments, both Cables and Switchgears.

Comparison of Havells India’s Financials: Q1 FY23 vs Q1 FY24 vs Q4 FY23

Havells India’s Standalone Financials for Q1 of FY-24

On a standalone basis, Havells reported Rs. 4,823.70 crore as its revenue from operations for the quarter ended 30th June 2023. The corresponding Profit After Tax (PAT) for the period stood at Rs. 287.38 crore.

Further, Havells logged Rs. 4.59 as its Earnings Per Share (EPS) during Q1 of 2023-24 financial year.

Havells’ Consolidated Financial Figures for Q1 of FY-24

YoY Comparison of Havells’ Financial Results: Q1 FY-24 vs. Q1 FY-23

On a Year-over-Year (YoY) basis, Havells’ Q1 revenue from operations grew by 13.88% to Rs. 4,833.80 crore in FY-24 from Rs. 4,244.46 crore during FY-23.

Consolidated PAT of the company grew impressively by 18.06% to Rs. 287.07 crore in Q1 of FY-24 from Rs. 243.16 crore clocked during Q1 of FY-23.

Further, EPS of the company was Rs. 4.58 on a consolidated basis for Q1 of FY-24 against Rs. 3.88 during Q1 of 2022-23.

QoQ Comparison of Havells’ Financial Numbers: Q1 FY-24 vs. Q4 FY-23

On a Quarter-over-Quarter (QoQ) basis, the company’s revenue from operations fell slightly by 0.52% from Rs. 4,859.21 crore which was reported for Q4 of FY-23. PAT also dropped by 19.82% from Rs. 358.04 crore clocked during the closing quarter of 2022-23 fiscal.

Havells India’s Segment-Wise Consolidated Revenue for Q1 of FY-24

Revenue in Rs. Cr.

Comparison of Havells’ Segment-Wise Revenue: Q1 FY23 vs Q1 FY24

Cables: Havells saw a YoY increase of 24.50% in its Q1 revenue from cables from FY-23 to FY-24. The company clocked Rs. 1,485.18 crore from the Cables segment during Q1 of FY-24 against Rs. 1,1192.92 crore in Q1 of FY-23.

Lighting & Fixtures: Revenue from this section dipped slightly by 0.70% to Rs. 371.04 crore in Q1 of FY-24 from Rs. 373.67 crore earned during Q1 of FY-23.

Electrical Consumer Durables: Q1 revenue from the company’s Electrical Consumer Durables (ECD) vertical rose marginally by 4.52% YoY, to Rs. 877.52 crore in FY-24 from Rs. 839.55 crore during FY-23.

During the opening quarter of FY-24, several parts of the country were affected by unseasonal rains, which led to overall cooler weather. This led to lower sales of fans and other cooling devices.

Mr. Anil Rai Gupta however expressed that the company expects its ECD business to recover soon. He said, “We would have seen better margins in Fans in the first quarter, had it not been for the unseasonal rains leading to some under absorption on manufacturing overheads. So we definitely see that the ECD business margins, especially the Fans, will improve in the coming times.

Lloyd Consumer: Revenue from Lloyd soared by 19.91% to Rs. 1,310.92 crore in Q1 of FY-24 from Rs. 1,093.79 crore in Q1 of FY-23.

Speaking about the performance of the company’s sub-brand ‘Lloyd’, Mr. Gupta said, “Lloyd performance has been encouraging, and the brand is building upon the positive momentum. Commodities have relatively softened, while the impact has not been fully reflected in the margin”.

Others: This segment takes into account some of Havells’ other products such as water pumps, motors, and purifiers.

On a YoY basis, the company’s revenue from this segment increased by 9.09% to Rs. 248.28 crore which was reported for Q1 of FY-24, from Rs. 227.60 crore clocked during Q1 of FY-23.

Lloyd May Venture into White Labelling to Expand International Reach

While addressing Havells’ shareholders, Mr. Gupta said, “We’ve been looking at expanding our international business for not only Lloyd but for other product categories. And yes, there is an opportunity available in manufacturing, not only other products but also air conditioners for white labelling. Just like the same way we have been doing Switchgears in the past for known international brands.

He further added that Lloyd had already started exporting some products and that the company is open to the idea of white labelling*.

*White labelling refers to the practice of re-branding of a product by a company / brand, which has been manufactured by another manufacturer.

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. 16,910.73 crore for FY-23. 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.