Havells India Q2 PAT seen up 22% to Rs 85 cr

Havells India's profit after tax is expected to go up by 21.7 percent year-on-year to Rs 85 crore in the quarter ended September 2012.

Net sales are seen going up by 20.4 percent to Rs 1,026 crore from Rs 852 crore during the same period.

Earnings before interest, tax, depreciation and amortisation (EBITDA) is likely to rise by 23.1 percent YoY to Rs 127 crore in the July-September quarter.

Operating profit margin is expected to go up by 25 basis points to 12.4 percent for the quarter.

Analysts on an average expect strong results on the back of new product launches + start of festive season + doubling of switchgear capacity.

Revenues will be driven by the electric consumer durables and lighting business while European sales are expected to remain muted.

Analysts feel the domestic business is expected to report impressive numbers driven by strength in consumption business (fans, lighting appliances) while margins for Sylvania are expected to remain similar to Q1 levels.

EBITDA margin is expected to look subdued due to a high base & high procurement costs whereas the company is also expected to benefit via rupee appreciation against the US dollar.