Havells India Limited (HAVELLS) Q3 24/25 earnings summary

Executive summary

• Revenue from operations for Q3 FY25 was Rs. 4,888.98 crore, up from Rs. 4,413.86 crore in Q3 FY24, reflecting year-over-year growth.

• Net profit for Q3 FY25 stood at Rs. 277.96 crore, compared to Rs. 287.91 crore in Q3 FY24.

• Consumer, industrial, and infrastructure segments delivered healthy performance, but commodity fluctuations impacted domestic wire growth, leading to moderate overall revenue growth.

• New Tumkur cable plant eased capacity constraints, driving strong revenue growth in power cables; further scale-up and capacity creation are underway.

• Announced INR 480 crore CapEx for a new refrigerator manufacturing facility in Ghiloth, Rajasthan, aiming to become a full-stack consumer durable player.

Financial highlights

• Consolidated total income for Q3 FY25 was Rs. 4,953.31 crore, up from Rs. 4,469.75 crore in Q3 FY24.

• Lighting segment saw healthy volume growth of 13%-14% YoY, with price erosion bottoming out and margin improvement.

• Cables achieved 11%-12% volume growth, while wires saw a slight decline, resulting in flat overall volume growth for the segment.

• Appliances and water heaters posted strong double-digit growth, with appliances outpacing fans and water heaters.

• Lloyd segment reported 15% growth, with non-AC categories growing faster than ACs.

Outlook and guidance

• Expect normalization of switchgear margins in coming quarters as plant relocation and product mix issues resolve.

• ECD margins anticipated to return to normal levels in the next quarters, targeting 12%-14% EBIT in the medium to long term.

• Ex-Lloyd EBITDA margin expected to return to 12%-13% by FY26.

• Channel sentiment is positive ahead of the summer season, with restocking expected in Q4, especially for wires and cables.