Havells India Q1 earnings: Net profit falls to Rs 298 crore, revenue rises 20%

Havells India reported a strong rise in revenue for the June quarter, although profitability came under pressure due to higher advertising and promotional expenses. The company's revenue from operations climbed 20% year-on-year to Rs 6,510 crore, compared with Rs 5,437 crore in the corresponding quarter of the previous financial year.

Net profit fell 15.4% for the June quarter to Rs 298 crore from Rs 352 crore during the same quarter last year.

Operating performance, however, was weaker. EBITDA declined 8.8% year-on-year to Rs 474 crore from Rs 520 crore a year ago. Consequently, the EBITDA margin contracted by over 200 basis points to 7.3%, compared with 9.6% in the year-ago quarter.

In its investor presentation, Havells said margins across business segments were significantly impacted by elevated advertising and promotional (A&P) spending during the first quarter. The company, however, remains optimistic about profitability going forward, citing recent price hikes and an expected moderation in A&P expenditure.

Among individual business segments, the Switchgears division reported a 3.5% year-on-year decline in revenue to Rs 608 crore.

The Cables business continued to be the standout performer, with revenue rising 27% year-on-year to Rs 2,456 crore, driven by healthy demand and capacity utilisation.

Revenue from the Lighting & Fixtures segment increased 4.5% year-on-year to Rs 390 crore, while the Electrical Consumer Durables business posted a 12% growth to Rs 1,113 crore.

The Lloyd Consumer business registered a 15.7% increase in revenue compared with the year-ago quarter. Meanwhile, the company's  Renewables business delivered the strongest growth, with revenue more than tripling from the corresponding period last year.

Separately, Havells announced plans to expand its cable manufacturing capacity at its Vasanthnarasapura Industrial Area facility in Karnataka. The company will invest approximately Rs 255 crore** to increase the plant's annual cable production capacity to 7.34 lakh kilometres from the current 4.59 lakh kilometres.

The expansion project is scheduled for completion by December 2027 and will be financed through internal accruals.