Havells India Q3 profit falls on subdued consumer business

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Electrical equipment maker Havells India Ltd reported a 7.2% fall in quarterly profit on Thursday as it spent more on advertising, and high inflation hurt consumer demand.

Several Indian companies, including Maruti Suzuki, Dabur India and Marico, have spoken about the impact of inflation on consumer-spending.

Havells’ profit fell to 2.84 billion rupees ($34.91 million) in the third-quarter ended Dec. 31, from 3.06 billion rupees a year earlier.

Revenue from operations rose 12.8% to 41.20 billion rupees, Havells added, while overall margins fell to 20% from 20.7% a year earlier, the company said in a statement.

Havells, which owns brands like Lloyd and Crabtree, said it had increased its advertising and sales promotion expenses by 27% to 1.28 billion rupees.

Lloyd, which makes airconditioners, continues to hold high-cost inventory, Havells said, adding that margins should improve in the fourth quarter.

Losses at its Lloyd segment widened to 600 million rupees from a loss of 420 million rupees year ago, while its switchgears and lighting and fixtures business posted a 12% and 39% drop in profit, respectively.