Havells India Q4 net up 20% at Rs 109.7 cr; sales up 12%

Havells India' fourth quarter profit jumped by 20 percent to Rs 109.8 crore from Rs 91.52 crore a year ago. Total income also surged by 11.7 percent from 1048.8 crore to Rs 1172.9 crore.

The toplie growth was weak but the company did fare well on the operation front. Interest cost has also come off sharply to Rs 2.7 crore from Rs 20 crore, a year ago.

The earnings before interest, tax, depreciation and amortization was up 16.4 percent at Rs 146 crore against Rs 125 crore in the previous quarter last fiscal. The company’s core operating profit margins have also improved by 50 basis points to 12.5 percent.

Commenting on the financial performance, Havells (India) Joint Managing Director Anil Rai Gupta told PTI, "The results are in line with expectations despite challenging economic conditions, particularly in Europe. A robust growth in distribution network and new product launches in small domestic appliances have contributed to our performance."      

He added that the company continued to aggressively promote its range of products across all markets and was confident of maintaining growth trends during the current year.

Segmentwise break-up

Switchgears form 25 percent of the company's revenues. Margins were under pressure in this segment. Revenues were up 31.2 percent at Rs 312 crore compared to Rs 238 crore. Earnings before interest, tax (EBIT) margins were down by 330 basis points to 31.3 percent.

Cables and Wires comprises 40 percent of the total revenues. Sales in this segment were down 3.1 percent at Rs 462 crore. EBIT margins were also down 290 bps at 6.0 percent against 8.9 percent.