Omnichannel strategy including online, rural, modern trade and enterprise business penetration playing out well, adding new customers and broad basing demand channels
There has been increased conversion in projects and B2B
Increase in commodity cost remains unabated with severe escalation in a rather short period
Price increase have been staggered creating a lag effect on margins. However, they maintain a positive outlook on demand growth which could support margin as well
Switchgear growth reflecting real estate upcycle
Higher commodity prices contributed growth in Cable & Wires
Lighting has been beneficiary of deeper penetration and new launches
Industrial and infrastructure expected to remain strong
Ex cables revenue growth: 50% growth was due to commodity price increases and 50% due to volume growth.
For the cables segment 80% growth was due to commodity price hikes.
Capex plan (Capital expenditure): INR 300 to 350 Cr for FY-22.
Applied for PLI scheme for components manufacturing in Air conditioning category. Full details will be available once the government approves their application.
In others segment, motors are doing well. It will take a couple of years for the others segment to contribute a good portion to the revenue mix.
In the Lloyds segment, 70% of the revenues comes from AC’s (Air conditioners)
Inventories are at normalized levels.
Supply chain disruptions is minimal for Havells because 90%+ of its production capacity is in house.
Adequate price increase in Lloyd has been challenging due to hyper competitive environment. Margins were further impacted by under absorption of overheads due to lower production.
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