Higher commodity prices hurt Havell's Q2 profit

20 Oct 2022 , 01:58 PM

As a result of rising commodity prices, Havells India Ltd. on Wednesday announced a 38.15% drop in its consolidated net profit for the second quarter that ended on September 30, 2022, to Rs187.01 crore.

According to a regulatory filing by Havells, the manufacturer of consumer electrical items reported a consolidated net profit of Rs302.39 crore in the quarter ending in July-September of last year. In comparison to a similar period last fiscal year, Havells’ operating revenue increased by 13.63% to Rs3,679.49 crore during the period under review.

Its total expenditures were Rs3,471.57 crore, up 21.10% from Rs2,866.54 crore in the second quarter of FY 2022-23. “Decent revenue growth considering the inflationary climate,” said Anil Rai Gupta, chairman and managing director of Havells India. Margins were negatively influenced by changes in commodity prices.

“We think that margins have reached their lowest point and will now begin to rise. The outlook for demand is still favorable, he noted. The Switchgears segment brought in Rs487.90 crores in revenue, while the Cables segment brought in Rs1,359.39 crores.

In the second quarter of FY23, Havells’ income from lighting and fixtures was Rs401.75 crore. It made Rs773.47 crore from electrical consumer durables. The 2017 acquisition by Havells of Lloyd Consumer resulted in revenue of Rs419.79 crore. On the BSE, Havells India Ltd. shares fell 0.69 % on Wednesday to close at Rs1,248.35 per share.

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