Havells India Ltd., one of India’s leading electrical and consumer durable companies, announced its Q2 FY2025 results (for the quarter ended September 30, 2024) on October 17, 2024. The company delivered strong revenue growth, supported by robust performance in the cables, electrical consumer durables (ECD), and lighting segments. However, margins remained under pressure due to fluctuating commodity prices. Despite that, Havells managed to post healthy profit growth, driven by volume expansion and festive demand.
Key Financial Highlights
| Metric | Q2 FY2025 | Q2 FY2024 | YoY Growth |
|---|---|---|---|
| Revenue | ₹4,625.75 Cr | ₹3,943.63 Cr | +17.3% |
| Net Profit | ₹273 Cr | ₹249 Cr | +9.5% |
| EBITDA | ₹380 Cr | ₹373 Cr | +1.7% |
| EPS | ₹4.61 | ₹3.95 | +16.7% |
Note: Minor differences may occur due to rounding and data variations across filings.
Management Commentary
The management stated that the growth trajectory remains strong across product categories, with festive demand and infrastructure spending supporting volume expansion. However, input cost fluctuations and commodity price volatility—especially in the cables segment—affected margins. The company emphasized continued focus on operational efficiency, product innovation, and market expansion, particularly in the premium consumer segment.
Segment Performance
Cables & Wires
- Revenue surged 23% YoY to approximately ₹1,805 crore.
- Growth driven by strong demand recovery, channel restocking, and infrastructure projects.
Electrical Consumer Durables (ECD)
- Strong performance across fans, small domestic appliances, and water heaters.
- Festive demand and rural recovery supported steady sales momentum.
Lighting
- Volume growth continued amid price stabilization in LED and commercial lighting segments.
- Focus on innovation and energy-efficient products boosted brand strength.
Market Reaction
After the announcement, Havells’ shares dipped nearly 4% intraday, trading around ₹1,820–₹1,859 on October 17, 2024.
The decline was largely attributed to margin concerns, despite strong topline growth. Investors are watching the company’s cost management efforts in the upcoming quarters.
Peer Comparison
Compared to peers like Polycab India and KEI Industries, Havells showed stable revenue and profit growth but slightly lower margin expansion. While Polycab benefited from strong export demand, Havells’ diversified consumer portfolio provided steady resilience amid commodity price headwinds.
Future Outlook
Analysts remain optimistic about Havells’ long-term prospects.
- The company’s broad product mix, strong brand presence, and focus on premiumization position it well for sustainable growth.
- Recovery in housing, infrastructure, and consumer spending is expected to drive double-digit revenue growth in FY2026.
- However, investors should watch raw material trends and margin recovery closely in upcoming quarters.
FAQs
1. What was Havells India’s net profit in Q2 FY2025?
Havells reported a net profit of ₹273 crore, up 9.5% year-on-year.
2. Did Havells India beat market expectations?
The company’s revenue met expectations, but EBITDA margins were slightly below analyst forecasts due to input cost pressures.
3. How did Havells India’s margins perform this quarter?
EBITDA margins remained steady at around 8%, reflecting higher raw material costs and competitive pricing in the cables business.
Conclusion
Havells India delivered a steady performance in Q2 FY2025, with strong revenue momentum across key segments and positive earnings growth despite margin pressures. The company’s diversified portfolio, festive season demand, and continued focus on innovation are likely to sustain growth in the coming quarters. Investors may view the current margin headwinds as temporary within a solid long-term growth story.
Sources: Havells India Financials
