Havells Q2 net profit flat at Rs 179.51 cr

Consumer electrical goods maker Havells India on Wednesday reported almost flat consolidated net profit at Rs 179.51 crore for the second quarter ended September 2019 due to sluggish demand.

The company had reported a net profit of Rs 179.70 crore in July-September period a year ago, Havells said in a regulatory filing. Its revenue from operations rose 1.75 per cent to Rs 2,232.65 crore during the quarter from Rs 2,194.13 crore in the corresponding quarter of the previous year.

“Demand remains sluggish extending from real estate to industrial and infrastructure segments. Consumer business except LED TV has performed reasonably,” Havells India Chairman and Managing Director Anil Rai Gupta said. Total expenses rose 3.92 per cent to Rs 2,055.74 crore in the quarter under review as compared with Rs 1,978.19 crore a year ago.

The company’s revenue from switchgears segment was at Rs 397.72 crore, down 0.71 per cent from Rs 400.57 crore in the year-ago period. Revenue from cables segment rose 7.15 per cent to Rs 821.31 crore in the quarter under review from Rs 766.47 crore a year ago, while that from lighting and fixtures was down 1.96 per cent to Rs 283.09 crore as compared with Rs 288.75 crore in the year-ago period.

The company’s revenue from electrical consumer durables increased 14.58 per cent to Rs 550.58 crore as against Rs 480.49 crore in September quarter of 2018-19. Revenue from Lloyd Consumer, which Havells acquired in 2017, was down 30.21 per cent to Rs 179.95 crore as against Rs 257.85 crore a year ago.

Over the outlook, Gupta said the company expects a better second half in this fiscal. “Demand outlook remains benign, though we expect better H2 on improved business efficiency,” he said.

Shares of Havells India on Wednesday closed at Rs 673.90 on the BSE, down 0.66 per cent from its previous close.