Havells India Q2 net up 24% to Rs 87 cr, stock falls 5%

Electrical products manufacturer Havells India  's net profit rose by 24 percent year-on-year to Rs 87 crore in the quarter ended September 2012, which was in-line with expectations of Rs 85 crore.

Net sales increased 13.5 percent to Rs 958 crore from Rs 844 crore during the same period, which came in slightly lower than expectations of Rs 1,026 crore.

Earnings before interest, tax, depreciation and amortization (EBITDA) went up by 26.7 percent YoY to Rs 129.2 crore for the quarter.

EBITDA margin grew by 130 basis points to 13.4 percent in the July-September quarter of 2012 from 12.1 percent in a year ago period.

Havells India has reported a forex gain of Rs 10 crore as against loss of Rs 13 crore during the same period.

At 14:38 hours IST, the share plunged 5 percent to Rs 589 amid large volumes on the Bombay Stock Exchange due to disappointment in switchgear and electrical consumer durables sectors.

Revenues were upbeat on all segments. Domestic business (electrical consumer durables) revenues grew by 33 percent while its switchgears business (contributes 25 percent to topline) went up by around 15 percent and lighting & fixtures (contributes 15 percent to total revenues) rose by 14 percent YoY.

But the company disappointed by its segmental earnings before interest & tax (EBIT) margin. Switchgear EBIT margin dropped by 300 basis points while electrical consumer durables margin went down by 425 basis points YoY.

Havells India has reduced its guidance on Sylvania’s margins from 7.5 percent earlier to 5 percent now.

Source: www.moneycontrol.com

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Gaurav Agarwal

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DENIP Consultants Pvt Ltd