Havells India Limited announced its financial results for the third quarter ending December 31, 2024, reporting mixed performance metrics.
Key Financial Highlights:
- Revenue: The company’s revenue from operations increased by nearly 11% to ₹4,883 crore, up from ₹4,413.86 crore in the same period the previous year.
- Net Profit: Net profit declined by approximately 2% to ₹283 crore, compared to ₹288 crore in the corresponding quarter of the prior year.
- Total Expenses: Total expenses rose by 12.3% to ₹4,564 crore, primarily due to increased labor and advertising costs.
Dividend Declaration:
The company declared an interim dividend of ₹4 per share.
Segment Performance:
- Switchgears: Revenue for the switchgears segment increased by 5% year-over-year, reaching ₹500 crore.
- Cables: The cables segment reported a 7% revenue growth, totaling ₹1,200 crore.
- Lighting and Fixtures: This segment saw a 6% increase in revenue, amounting to ₹350 crore.
- Electrical Consumer Durables: Revenue in this segment grew by 8%, reaching ₹1,000 crore.
- Lloyd Consumer Division: The division experienced a 15% revenue growth, totaling ₹1,200 crore.
Analyst Insights:
Analysts have noted that while Havells India has achieved commendable revenue growth across its segments, the decline in net profit is attributed to higher operational expenses, including labor and advertising costs. The company’s ongoing investments in marketing and talent acquisition are part of a strategic initiative to enhance research and development capabilities and strengthen retail distribution networks. Additionally, substantial investments in the Lloyd brand aim to expand its product portfolio and bolster brand recognition.
Conclusion:
Havells India’s Q3 FY25 results reflect a robust increase in revenue, underscoring strong market demand and effective sales strategies. However, the slight decline in net profit highlights the impact of rising operational costs. The company’s strategic investments in marketing, R&D, and the Lloyd brand are expected to yield long-term benefits, despite the short-term pressure on profitability. Investors should monitor how these expenditures influence future financial performance and the company’s ability to manage expenses while pursuing growth initiatives.
