Icon times
Margins have been under pressure with elevated commodity costs for Havells | Q3 FY22 Conference Call Highlights

Margins have been under pressure with elevated commodity costs for Havells | Q3 FY22 Conference Call Highlights

Published on 21 January 2022 .Views 3 .Comments 0
  • Sales grew 13% on QoQ and 15% YoY basis while net profit grew 1% on QoQ basis while -13% on YoY basis.
  • Operating margins at 12% this quarter while it was 13.7% in the last quarter, primarily affected by inflation.
  • 15% revenue growth over last year with a 27% CAGR over 2 years
  • Contribution margin for switchgears (39.8%), cable (14.1%), lighting and fixture (33.8%), Electrical consumer durable (ECD) is (22.3%) and Others (18.7%).
  • Festive demand was encouraging, however demand tapered in later part of Q3, owing to high inflation and then omicron scare
  • Margins have been under pressure with elevated commodity costs and partial transition in pricing especially in consumer durables
  • Advertising and promotion, as planned, reverted to normalized levels against last year
  • Switchgear benefiting from new construction and range expansion
  • Higher commodity prices contributed growth in Cable & Wires
  • Consumer Lighting, a healthy mix of volume and value growth
  • Appliances led the growth in ECD with strong festive demand
  • Industrial and Infrastructure showing signs of revival
  • Lloyd was adversely impacted owning to low season and price hikes being deferred due to competitive intensity
  • Capex planned for FY22 is 250-275 Crore.
  • Crabtree brand deals with the architectural demand. Sales have been around Rs 250- 300 Cr.
  • Standard brand deals with the contractor segment. Here the sales are Rs 600- 700 Cr. In the next 2 years planning to do Rs 1000 Cr sales.
  • Consumer Durable- Lloyd segment will take 2 to 3 years to stabilise. Current market share in this segment is near 10% which was 8% when the company acquired the Lloyd brand.
Disclaimer: The information here is provided for reference purposes only and should not be misconstrued as investment advice. Under no circumstances does this information represent a recommendation to buy or sell stocks or MF.

Originally Published On: https://blog.investyadnya.in/havells-india-q3fy22-conference-call-highlights/
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. 11,999.00/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.

Recently Uploaded

premium Premium
free Free
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)
Chat with InvestYadnya