Havells India

21 Jan 2022 , 08:55 AM

Consolidated net sales of Havells India for the quarter ended Dec 2021 has increased 15.40% to Rs 3664.21 crore.  Operating profit margin has declined from 16.06% to 12.01%, leading to 13.69% decline in operating profit to Rs 440.21 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 48.98% to 55.89%.   Purchase of finished goods cost fell from 14.69% to 12.51%.   Employee cost decreased from 7.11% to 6.92%.   Other expenses fell from 13.91% to 12.91%.   Selling and administration expenses rose from 1.54% to 2.68%.   Other income rose 25.10% to Rs 48.84 crore.  PBIDT fell 10.94% to Rs 489.05 crore.  Provision for interest fell 18.97% to Rs 12.3 crore.  PBDT fell 10.71% to Rs 476.75 crore.  Provision for depreciation rose 2.80% to Rs 66.2 crore.  Profit before tax down 12.56% to Rs 410.55 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 104.73 crore, compared to Rs 119.38 crore.  Effective tax rate was 25.51% compared to 25.43%. Minority interest was nil in both the periods.  Net profit attributable to owners of the company decreased 12.66% to Rs 305.82 crore.  

 

 

 

        

Sales of Switch Gear segment has gone up 13.46% to Rs 495.97 crore (accounting for 13.54% of total sales) benefiting from new construction and range expansion.  Sales of Cable and Wire segment has gone up 33.22% to Rs 1,205.83 crore (accounting for 32.91% of total sales) benefited by higher commodity prices.  Sales of Electrical Consumer Durables segment rose 14.36% to Rs 895.53 crore (accounting for 24.44% of total sales) with growth primarily led by Appliances with strong festive demand.  Sales of Lighting & Fixtures segment has gone up 13.86% to Rs 412.92 crore (accounting for 11.27% of total sales) benefited by a healthy mix of volume and value growth.  Sales of Others segment has gone up 4.83% to Rs 184.14 crore (accounting for 5.03% of total sales).  Sales of Lloyd Consumer segment has gone down 8.16% to Rs 469.82 crore (accounting for 12.82% of total sales).  

        

Profit before interest, tax and other unallocable items (PBIT) has slumped 13.81% to Rs 432.15 crore.  PBIT of Switch Gear segment rose 5.51% to Rs 144.79 crore (accounting for 33.50% of total PBIT).  PBIT of Cable and Wire segment rose 22.39% to Rs 125.62 crore (accounting for 29.07% of total PBIT).  PBIT of Electrical Consumer Durables segment fell 19.73% to Rs 112.79 crore (accounting for 26.10% of total PBIT).  PBIT of Lighting & Fixtures segment rose 5.19% to Rs 87.42 crore (accounting for 20.23% of total PBIT).  PBIT of Others segment fell 37.41% to Rs 4.40 crore (accounting for 1.02% of total PBIT).  PBIT of Lloyd Consumer reported loss of Rs 42.87 crore compared to profit of Rs 30.87 crore.  

        

PBIT margin of Switch Gear segment fell from 31.39% to 29.19%.  PBIT margin of Cable and Wire segment fell from 11.34% to 10.42%.  PBIT margin of Electrical Consumer Durables segment fell from 17.94% to 12.59%.  PBIT margin of Lighting & Fixtures segment fell from 22.92% to 21.17%.  PBIT margin of Others segment fell from 4.00% to 2.39%.  PBIT margin of Lloyd Consumer segment fell from 6.03% to -9.12%.  Overall PBIT margin fell from 15.79% to 11.79%. As the company has effected calibrated price hike in Q3FY22, the contribution margins sequentially maintained.  However profitability of Lloyd was adversely impacted owning to low season and price hikes being deferred due to competitive intensity.

        

Festive demand was encouraging, however demand tapered in later part of Q3, owing to high inflation and then omicron scare. Margins have been under pressure with elevated commodity costs and partial transition in pricing especially in consumer durables.  Advertising and promotion, as planned, reverted to normalized levels against last year.

 

Nine-month performance

Consolidated net sales (including other operating income) for the YTD period ended Dec 2021 has increased 33.63% to Rs 9512.22 crore. Operating profit margin has declined from 14.94% to 13.04%, leading to 16.63% rise in operating profit to Rs 1,240.49 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 47.29% to 54.08%.   Purchase of finished goods cost fell from 14.72% to 12.94%.   Employee cost decreased from 8.82% to 7.62%.   Other expenses fell from 14.30% to 12.66%.   Selling and administration expenses rose from 1.07% to 1.82%.   Other income fell 22.81% to Rs 116.33 crore.  PBIDT rose 11.74% to Rs 1356.82 crore.  Provision for interest fell 30.12% to Rs 34.36 crore.  PBDT rose 13.50% to Rs 1322.46 crore.  Provision for depreciation rose 3.39% to Rs 190.15 crore.  Profit before tax grew 15.40% to Rs 1,132.31 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 288.32 crore, compared to Rs 240.74 crore.  Effective tax rate was 25.46% compared to 24.53%. Minority interest was nil in both the periods.  Net profit attributable to owners of the company increased 13.98% to Rs 843.99 crore.  

        

Sales of Switchgears segment has gone up 32.47% to Rs 1,321.46 crore (accounting for 13.89% of total sales).  Sales of Cable segment has gone up 46.77% to Rs 3,156.98 crore (accounting for 33.19% of total sales).  Sales of Electrical Consumer Durables segment rose 32.24% to Rs 2,201.22 crore (accounting for 23.14% of total sales).  Sales of Lighting & Fixtures segment has gone up 26.91% to Rs 986.37 crore (accounting for 10.37% of total sales).  Sales of Others segment has gone up 24.00% to Rs 532.61 crore (accounting for 5.60% of total sales).  Sales of Lloyd Consumer segment has gone up 19.61% to Rs 1,313.58 crore (accounting for 13.81% of total sales).  

        

Profit before interest, tax and other unallocable items (PBIT) has jumped 18.87% to Rs 1,219.85 crore.  PBIT of Switchgears segment rose 31.43% to Rs 369.68 crore (accounting for 30.31% of total PBIT).  PBIT of Cable segment rose 46.22% to Rs 367.06 crore (accounting for 30.09% of total PBIT).  PBIT of Electrical Consumer Durables segment rose 3.88% to Rs 306.11 crore (accounting for 25.09% of total PBIT).  PBIT of Lighting & Fixtures segment rose 41.72% to Rs 198.94 crore (accounting for 16.31% of total PBIT).  PBIT of Others segment rose 81.61% to Rs 30.02 crore (accounting for 2.46% of total PBIT).  PBIT of Lloyd Consumer reported loss of Rs 51.96 crore compared to profit of Rs 42.33 crore.  

        

PBIT margin of Switchgears segment fell from 28.20% to 27.98%.  PBIT margin of Cable segment fell from 11.67% to 11.63%.  PBIT margin of Electrical Consumer Durables segment fell from 17.70% to 13.91%.  PBIT margin of Lighting & Fixtures segment rose from 18.06% to 20.17%.  PBIT margin of Others segment rose from 3.85% to 5.64%.  PBIT margin of Lloyd Consumer segment fell from 3.85% to 3.96%.  Overall PBIT margin fell from 14.42% to 12.82%.  

Other developments

Promoters stake was 59.47% as of 31 December 2021, compared to 59.50% as of 31 December 2020.  

Havells India : Consolidated Results

Quarter ended Year to Date Year ended Particulars 202112 202012 Var.(%) 202112 202012 Var.(%) 202103 202003 Var.(%) Net Sales (including other operating income) 3,664.21 3,175.20 15.40 9,512.22 7,118.09 33.63 10,457.30 9,440.26 10.77 OPM (%) 12.01 16.06 -405 bps 13.04 14.94 -190 bps 15.03 10.90 413 bps OP 440.21 510.06 -13.69 1,240.49 1,063.60 16.63 1,571.78 1,028.65 52.80 Other Inc. 48.84 39.04 25.10 116.33 150.70 -22.81 187.36 113.41 65.21 PBIDT 489.05 549.10 -10.94 1,356.82 1,214.30 11.74 1,759.14 1,142.06 54.03 Interest 12.30 15.18 -18.97 34.36 49.17 -30.12 72.68 19.72 268.56 PBDT 476.75 533.92 -10.71 1,322.46 1,165.13 13.50 1,686.46 1,122.34 50.26 Depreciation 66.2 64.4 2.80 190.15 183.91 3.39 248.91 217.97 14.19 PBT 410.55 469.52 -12.56 1132.31 981.22 15.40 1437.55 904.37 58.96 Share of Profit/(Loss) from Associates 0 0 – 0 0 – 0 0 – PBT before EO 410.55 469.52 -12.56 1132.31 981.22 15.40 1437.55 904.37 58.96 EO Income 0 0 – 0 0 – 0 0 – PBT after EO 410.55 469.52 -12.56 1132.31 981.22 15.40 1437.55 904.37 58.96 Taxation 104.73 119.38 -12.27 288.32 240.74 19.76 393.24 168.76 133.02 PAT 305.82 350.14 -12.66 843.99 740.48 13.98 1044.31 735.61 41.97 Minority Interest (MI) 0 0 – 0 0 – 0 0 – Net profit 305.82 350.14 -12.66 843.99 740.48 13.98 1044.31 735.61 41.97 P/(L) from discontinued operations net of tax 0 0 – 0 0 – 0 -0.26 – Net profit after discontinued operations 305.82 350.14 -12.66 843.99 740.48 13.98 1044.31 735.35 42.02 EPS (Rs)* 4.88 5.59 -12.66 13.48 11.82 13.98 16.67 11.75 41.97 * EPS is on current equity of Rs 62.63 crore, Face value of Rs 1, Excluding extraordinary items. # EPS is not annualised bps : Basis points EO : Extraordinary items Figures in Rs crore Source: Capitaline Corporate Database

Havells India : Consolidated Segment Results

td>-   Quarter ended Year to Date Year ended % of (Total) 202112 202012 Var.(%) % of (Total) 202112 202012 Var.(%) % of (Total) 202103 202003 Var.(%) Sales Switch Gear 13.54 495.97 437.12 13.46 13.89 1,321.46 997.55 32.47 13.97 1,460.88 1,339.38 9.07 Cable and Wire 32.91 1,205.83 905.17 33.22 33.19 3,156.98 2,150.97 46.77 30.41 3,180.17 2,994.19 6.21 Electrical Consumer Durables 24.44 895.53 783.06 14.36 23.14 2,201.22 1,664.61 32.24 22.73 2,376.99 2,005.42 18.53 Lighting & Fixtures 11.27 412.92 362.64 13.86 10.37 986.37 777.24 26.91 10.65 1,113.98 1,025.33 8.65 Others 5.03 184.14 175.65 4.83 5.60 532.61 429.54 24.00 6.09 636.53 485.67 31.06 Lloyd Consumer 12.82 469.82 511.56 -8.16 13.81 1,313.58 1,098.18 19.61 16.15 1,688.75 1,590.27 6.19 Total Reported Sales 100.00 3,664.21 3,175.20 15.40 100.00 9,512.22 7,118.09 33.63 100.00 10,457.30 9,440.26 10.77 Less: Inter segment revenues   0.00 0.00 –   0.00 0.00   0.00 0.00 – Net Sales 100.00 3,664.21 3,175.20 15.40 100.00 9,512.22 7,118.09 33.63 100.00 10,457.30 9,440.26 10.77 PBIT Switch Gear 33.50 144.79 137.23 5.51 30.31 369.68 281.28 31.43 26.50 404.69 324.94 24.54 Cable and Wire 29.07 125.62 102.64 22.39 30.09 367.06 251.03 46.22 26.44 403.78 332.12 21.58 Electrical Consumer Durables 26.10 112.79 140.52 -19.73 25.09 306.11 294.69 3.88 26.43 403.68 286.98 40.66 Lighting & Fixtures 20.23 87.42 83.11 5.19 16.31 198.94 140.38 41.72 13.76 210.16 147.54 42.44 Others 1.02 4.40 7.03 -37.41 2.46 30.02 16.53 81.61 2.03 30.98 -25.01 LP Lloyd Consumer -9.92 -42.87 30.87 PL -4.26 -51.96 42.33 PL 4.85 74.12 -40.12 LP Total PBIT 100.00 432.15 501.40 -13.81 100.00 1,219.85 1,026.24 18.87 100.00 1,527.41 1,026.45 48.81 Less : Interest 12.30 15.18 -18.97 34.36 49.17 -30.12 72.68 19.72 268.56 Add: Other un-allcoable -9.30 -16.70 44.31 -53.18 4.15 PL -17.18 -102.62 83.26 PBIT Margin(%) Switch Gear   29.19 31.39 -220.08   27.98 28.20 -22.20   27.70 24.26 344.13 Cable and Wire   10.42 11.34 -92.16   11.63 11.67 -4.36   12.70 11.09 160.47 Electrical Consumer Durables   12.59 17.94 -535.02   13.91 17.70 -379.69   16.98 14.31 267.26 Lighting & Fixtures   21.17 22.92 -174.69   20.17 18.06 210.76   18.87 14.39 447.62 Others   2.39 4.00 -161.28   5.64 3.85 178.81   4.87 -5.15 1,001.66 Lloyd Consumer   -9.12 6.03 -1,515.93   -3.96 3.85 -781.02   4.39 -2.52 691.19 PBT 100.00 410.55 469.52 -12.56 100.00 1,132.31 981.22 15.40 100.00 1,437.55 904.11 59.00

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