Havells India Limited (HAVELLS) Q1 24/25 earnings summary

Executive summary

• Q1 FY2025 saw strong growth, especially in cooling products like air conditioners, fans, and air coolers, driven by a favorable summer and increased first-time buyers in the AC segment.

• Industrial and infrastructure segments performed well, though wires revenue was impacted by channel destocking due to commodity price declines in June 2024.

• Cost efficiency initiatives improved Lloyd's profitability, and continued investments are being made in brand building and talent.

• Board approved unaudited standalone and consolidated results for Q1 FY25 on July 18, 2024.

• Financials prepared per Ind-AS and reviewed by statutory auditors with unmodified reports.

Financial highlights

• Consolidated revenue from operations at ₹5,806.2 crore, up from ₹4,833.8 crore in Q1 FY24.

• Consolidated net profit at ₹407.5 crore, up from ₹287.1 crore in Q1 FY24.

• ECD segment posted 20% revenue growth, with premium fans performing well, though margin expansion remained flat due to higher ad spend and product mix.

• Lloyd achieved positive EBIT margins (3.5% in Q1, up from 2.8% in Q4), attributed to premiumization and manufacturing efficiencies.

• Price hikes were implemented across product categories in Q1 to offset raw material inflation.

Outlook and guidance

• Management remains cautious about the sustainability of consumer demand improvement, noting that recent growth may be partly due to a low base and seasonal factors.

• Lloyd is expected to see continued growth, with ongoing investments in brand, R&D, and manufacturing; no specific margin guidance was provided.

• Export business is targeted to eventually contribute up to 10% of revenues, with a focus on the U.S., SAARC, MESA, and developed markets.

• No forward-looking guidance provided; results reflect continued growth in revenue and profitability.