Havells India Q2 profit down 5% on lower operational growth

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Moneycontrol Bureau

Electrical equipment manufacturer Havells India's standalone profit after tax declined 4.9 percent year-on-year to Rs 119.61 crore (missed street expectations) in the quarter ended September 2014 on lower growth in operational income and higher tax cost. Profit in the year-ago period was Rs 125.72 crore.

Total income from operations grew by 16.3 percent, in-line, to Rs 1,365 crore in July-September quarter compared to Rs 1,174 crore in the same quarter last year.

According to the average of estimates of analysts polled by CNBC-TV18, profit was expected at Rs 132 crore on revenue of Rs 1,352 crore for the quarter.

Core operating profit climbed 6.5 percent year-on-year to Rs 180 crore but margin declined 120 basis points to 13.2 percent during the quarter. Both came in lower than analysts' expectations of Rs 197 crore and 14.5 percent, respectively.

Tax expenses during the quarter increased to Rs 46.77 crore from Rs 29.63 crore in same quarter last year.

Revenue from its switchgears business rose by 8 percent year-on-year to Rs 338.7 crore and cables business grew by 21.3 percent to Rs 591.4 crore while lighting & fixtures revenue jumped 7.6 percent to Rs 193.6 crore and electric & consumer durables revenue shot up 24.9 percent to Rs 241.4 crore during the same period.

Havells said its UK subsidiary Sylvania has reported at 5 percent (year-on-year) growth in second quarter net sales at euro 112.5 million and a 48 percent growth in operating profit at euro 4.6 million. The loss during the quarter declined to euro 1.1 million from euro 1.6 million year-on-year.

Consolidated (including Sylvania) profit after tax rose 1 percent on yearly basis to Rs 113 crore and revenue grew by 9 percent to Rs 2,207 crore in the quarter gone by.

At 14:19 hours IST, the stock was quoting at Rs 271.90, down Rs 6.70, or 2.40 percent on the BSE.