Havells India to establish refrigerator manufacturing facility

19 Nov 2024 , 04:24 PM

On November 19, Havells India announced plans to invest around ₹480 Crore in establishing a refrigerator manufacturing factory in Ghlioth, Rajasthan.

The capacity expansion is expected to total 14 lakh units by the second quarter of FY27. The investment will be funded by internal accruals.

The business stated that the capacity expansion is intended to capitalize on backward integration and economies of scale.

In addition, Havells India’s September quarter operating performance fell short of forecasts.

The net profit for the cables and wires manufacturing firm climbed by 7.7% from the same quarter previous year to ₹268.2 Crore. However, the amount was lower than what experts watching the firm had predicted. 

Havells reported a 16.4% increase in revenue to ₹4,539.3 Crore during the September quarter.

EBITDA margin for the quarter declined 140 basis points to 8.2% from 9.6% year on year, considerably below estimates of 10.6%.

In its investor presentation, the business noted that excessive commodity price volatility had an impact on contribution margins, notably in the cables area. They also highlighted that the change in the Christmas season resulted in an increase in advertising spending in the September quarter in comparison to the same time previous year, EBITDA came in flat at ₹374.6 Crore.

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