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Havells Q2 FY 22 Net Profit Dips by 7% YoY on Raw Material Cost Pressures

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Havells India Ltd. [NSE: HAVELLS, BOM: 517354], one of the leading Indian FMEG company announced its second quarter results for FY 2022.

Havells Standalone Financial Performance

Havells Standalone Financial Performance: Q2FY22 v/s Q2FY21 v/s Q1FY22

Comparison of Havells Q2 FY22 and Q2 FY21

Revenue of Havells India has risen by 31%, reaching ₹ 3,221 Cr in second quarter of FY22, up from ₹ 2,452 Cr in the corresponding period of the last fiscal. However, Net Profit of Havells India dipped by 7% to ₹ 302 Cr in the quarter ended September 2021 as against ₹ 325 Cr during the same quarter last year.

Havells QoQ Financial Comparison: Q2 FY22 v/s Q1 FY22

Havells revenue increased by 24% in Q2 FY22 compared to ₹ 2,598 crore in the previous quarter / Q1 FY22. Net Profit of the company has also gone up by 29% as compared to ₹ 234 Crore in Q1 FY22.

Segment Wise Revenue Analysis of Havells YoY for Q2 FY22 v/s Q2 FY21

Switchgear: The revenue rose by 20% to ₹ 443 Cr. in Q2 FY22, up from ₹ 370 Cr. in Q2 FY21.

Cables: The revenue of cable segment has increased tremendously, by 46% to ₹ 1,144 Cr. in Q2 FY22 from ₹ 785 Cr. in Q2 FY21. Some part of this can be attributed to the sharp increase in commodity prices.

Havells India's Segment-Wise Revenue Breakup for Q2FY21 v/s Q2FY22

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Lighting & Fixtures: The revenue sharply increased by 34% to Rs. 354 Cr. in Q2 FY22 from Rs. 265 Cr. in Q2 FY21.

Electrical Cons. Durables (ECD): Revenue has risen by 26% to ₹ 728 Cr. in Q2 FY22 from ₹ 580 Cr. in Q2 FY21.

Others: Revenue increased by 23% to ₹ 211 Cr. in Q2 FY22 from ₹ 172 Cr. in Q2 FY21. This includes revenue from Motors, Pumps, Personal Grooming and Water Purifier businesses.

Lloyd: Revenue increased by 22% to ₹ 341 Cr. in Q2 FY22 from ₹ 280 Cr. in Q2 FY21.

Havells Q2 FY22 Performance Result Summary

Havells India said in a release to the stock exchangesThe company has assessed the impact of the continuing Covid-19 pandemic on its current and future operations, liquidity position and cash flow giving due consideration to the internal and external factors. The company is continuously monitoring the situation and does not foresee any significant impact on its operations and the financial position as of September 30, 2021“.

As mentioned in Havells release, the company has witnessed an increase in conversion in projects and B2B sales, but price increase has been staggered creating a lag effect on margins.

Expressing on Q2 FY22 financial performance, Havell’s India Chairman and Managing Director, Mr. Anil Rai Gupta said “We are enthused with healthy revenue growth across business verticals. An increase in commodity cost remains unabated creating margin headwinds. However, our outlook on demand remains fairly positive”.

About Havells India Ltd. Havells is a leading Fast Moving Electrical Goods (FMEG) Company based in Noida, U.P. It manufactures a wide range of products such as Industrial & Domestic Circuit Protection Switchgear, Cables & Wires, Motors, Fans, Power Capacitors, Luminaires for Domestic, Commercial & Industrial applications, Modular Switches, Water Heaters and Domestic Appliances covering the entire gamut of household, commercial and industrial electrical needs. Its network constitutes 4000 professionals, over 7900 plus dealers, and 40 branches in India.