Icon times
Havells India Q2FY22 Conference Call Highlights

Havells India Q2FY22 Conference Call Highlights

Published on 22 October 2021 Views 12 Comments 0
  • Healthy growth across business verticals
  • 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.

Originally Published On: https://blog.investyadnya.in/havells-india-q2fy22-conference-call-highlights/
Attachments
File Name
private article suscription area icon

You like to know more. We like that!

Please subscribe Model Portfolio Plan to get access of all premium model portfolio articles Only at Rs 7499/Year.

Please login to view this free article.

This blog is available only for logged in users, please register and get access to view this article.

LATEST UPDATE

premium Premium
free Free
Read More

REPORTS


Corporate Action News

Chat on WhatsApp
Caret UP Arrow
InvestYadnya Support
Typically replies in minutes
InvestYadnya Support
Hi there
Welcome to InvestYadnya.
We are available to assist you on WhatsApp.
Please click on the button below to chat with us.
(10 AM to 7 PM IST)
16:10
Chat with InvestYadnya