Hindware Home Innovation clocks revenue growth of 16% in Q2FY23

Consumer appliances and building products company Hindware Home Innovation Limited (formerly Somany Home Innovation Limited) on November 14 announced its financial results for the quarter and half year ended September 30, 2022.

In H1 FY23, Hindware Home Innovation Limited's consolidated revenue from operations stood at Rs 1,393 crore, registering a growth of 45 percent. EBITDA grew 75 percent to Rs 131 crore during H1 FY23 as against Rs 75 crore in H1 FY22. For the quarter, consolidated revenue from operations came in at Rs 715 crore, up 16 percent. EBITDA grew 11 percent to Rs 64 crore compared to Rs 58 crore in Q2 FY22.

For the consumer appliances business, revenue from operations came in at Rs 254 crore in H1 FY23, registering a healthy growth of 42 percent Y-o-Y. EBITDA grew by 119 percent on a Y-o-Y basis to Rs 16 crore. EBITDA Margins also expanded by ~226 bps during H1FY23 over the corresponding period last year. For Q2 FY23, the segment registered a revenue growth of 12 percent on a Y-o-Y basis, with EBITDA at Rs 11 crore during the quarter despite subdued consumer demand amidst an inflationary environment.

The building products business, which comprises sanitaryware, faucets and plastic pipes, and fittings reported revenue from operations of Rs 1,111 crore, registering a growth of 48 percent Y-o-Y in H1 FY23. EBITDA stood at Rs 114 crore, up 72 percent on a Y-o-Y basis. For Q2 FY23, the building products business, reported revenues from operations worth Rs 576 crore, higher by 19 percent on a Y-o-Y basis, while EBITDA grew 16 percent on a Y-o-Y basis to Rs 53 crore.

The sanitaryware and faucets business continues to post industry-leading growth on the back of its innovative product mix, new product launches, and strengthened distribution and retail network despite rising input prices, such as gas.

Notably, the company's plastic pipes and fittings business with revenue growth of 50 percent Y-o-Y in H1 FY23, continues to be the fastest-growing brand in the industry.

Commenting on the company's performance, Sandip Somany, Chairman, Hindware Home Innovation Limited said, "Hindware Home Innovation Limited delivered an encouraging performance during the first half of the financial year despite inflationary pressures and input price volatility. Our topline increased by 16 percent and 45 percent on a year-over-year basis in Q2 and H1 FY23, highlighting the resilience of our business model."

"We have sought to offset rising input prices by implementing price hikes in sync with the market and also improving operational efficiencies." He added: "We will continue to leverage the strength of our business capabilities, brand, and distribution to create value for all our stakeholders."