Havells India Q2FY23 PAT falls -38% as higher input costs and inventories drive dip in operating profits

24 Oct 2022 , 06:46 PM

Havells India Ltd reported 13.91% growth in total revenues for the September 2022 quarter on consolidated basis at Rs3,668.94cr.

Revenue contraction was -13.27% in sequential terms, due to tepid OEM sales in the quarter. In terms of the sales mix,

Havells saw positive growth across all verticals. However, on sequential basis, cables and lightings & fixtures verticals. However, there was a fall in sales in the switchgears and FMEG verticals.

The big underperformer was the Lloyds Consumer vertical with sales falling over 60% sequentially.

Consolidated Profit after tax (PAT) for September 2022 quarter was lower by -38% at Rs186.87 crore as higher costs and larger investments in inventory results in operating profits falling across segments.

The operating losses sharply widened in the cases of Lloyds consumer business.

PAT margins were lower at 5.09% in the Sep-22 quarter compared to 9.36% in the Sep-21 quarter and also relatively lower than 5.73% in June 2022 quarter. The quarter saw a loss of Rs107 crore due to fire, which was fully covered by insurance claims.

Financial highlights for Sep-22 compared yoy and sequentially

	Havells India
Rs in Crore	Sep-22	Sep-21	YOY	Jun-22	QOQ
Total Income (Rs cr)	₹ 3,668.94	₹ 3,221.03	13.91%	₹ 4,230.14	-13.27%
Net Profit (Rs cr)	₹ 186.87	₹ 301.56	-38.03%	₹ 242.43	-22.92%
Diluted EPS (Rs)	₹ 2.98	₹ 4.81		₹ 3.87
Net Margins	5.09%	9.36%		5.73%