Havells India Limited (HAVELLS) Q4 24/25 earnings summary

Executive summary

• Q4 FY25 saw healthy revenue and profit growth, led by large appliances and cables, despite inflation pressures and commodity price volatility impacting margins.

• Board approved audited standalone and consolidated results for Q4 and FY25, with unmodified audit opinions.

• Lloyd delivered robust revenue growth and margin improvement, with continued focus on profitability.

• Final dividend of Rs. 6 per share recommended, in addition to Rs. 4 interim dividend for FY25.

• Appointment of MZ & Associates as Secretarial Auditors for five years, and re-appointment of Whole-time Director for three years.

Financial highlights

• Standalone revenue for Q4 FY25: Rs. 6,532.21 crore (up from Rs. 5,434.34 crore in Q4 FY24); FY25: Rs. 21,745.81 crore (up from Rs. 18,549.90 crore in FY24).

• Standalone net profit for Q4 FY25: Rs. 503.91 crore (vs. Rs. 447.19 crore in Q4 FY24); FY25: Rs. 1,488.84 crore (vs. Rs. 1,273.21 crore in FY24).

• Cables and wires segment achieved 20% growth, with value growth outpacing volume, especially in underground cables.

• Lloyd achieved INR 100 crore EBITDA for the full year, driven by cost savings and scale benefits.

• Basic EPS (standalone) for FY25: Rs. 23.75 (vs. Rs. 20.32 in FY24); consolidated EPS: Rs. 23.49 (vs. Rs. 20.28 in FY24).

Outlook and guidance

• Management expects operating leverage to support a return to normalized margins of 13-14.5% for the core business.

• Strategic investment of Rs. 600 crore in Goldi Solar Private Limited to secure supply of solar modules and cells; expected stake 8.90%-9.24%, closing by June 30, 2025.

• Lloyd will continue to invest in growth, focusing on both AC and non-AC categories, and sees further market share potential.

• Solar business, currently at INR 400-450 crore, is expected to grow multifold with recent strategic investments.

• Consumer demand is expected to improve with recent budget measures, though inflation and real estate trends remain watchpoints.