Moneycontrol
Oct 17, 2016 09:33 PM IST | Source: CNBC-TV18

Havells Q2 net seen up 28%; demand & new products may drive rev

Electrical equipment manufacturer Havells India's second quarter profit is likely to jump 28 percent year-on-year to Rs 155 crore, according to average of estimates of analysts polled by CNBC-TV18. Likely fall in interest cost after selling loss making Sylvania business and higher other income may support bottomline.


Moneycontrol Bureau


Electrical equipment manufacturer Havells India's second quarter profit is likely to jump 28 percent year-on-year to Rs 155 crore, according to average of estimates of analysts polled by CNBC-TV18. Likely fall in interest cost after selling loss making Sylvania business and higher other income may support bottomline.


Revenue is seen rising 13 percent to Rs 1,528 crore on yearly basis on account of better demand across segments and launch of new products. Even the low base in year-ago period may support topline.


Analysts expect double digit volume growth. ICICI Direct expects around 15 percent growth in switchgear business, 18 percent in ECD and 11 percent in lighting segment YoY while Emkay sees 7.5 percent growth in cables & wires business, 20 percent in ECD, 20 percent in lighting & fixtures and 17.5 percent in switchgear.


Operating profit may grow 17 percent to Rs 216 crore and margin may expand 40 basis points to 14.1 percent on account of cessation of royalty payments.

Analysts say consumer durables are expected to do better given festive demand while wires and cables can be a bit muted given weak industrial construction demand.

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