Emkay's research report on Havells India
Standalone performance weak – Revenue at Rs 12.4bn, up 5.3% with muted growth across segments. EBITDA margin improved 50bps yoy to 14.3% aided by gross margins. APAT was down 4% yoy to Rs 1.2bn due to lower other income
Benign input cost, better mix and cost efficiencies drive gross margins by 190bps yoy to 39.7% and EBITDA margins by 50bps to 14.2%. Expect margins to stabilize at 13.5-14%
Sylvania reports flat revenues to €110.8mn and EBITDA margins at 5.1%. But higher pension liabilities, full year charges on sales return and higher depreciation led to net loss
"Lower domestic revenue FY14-17E CAGR to 15% vs earlier 17%. Domestic margins to improve, while Sylvania margins to remain stable, but currency changes impact earnings FY16/17E EPS by 6%/5%. Remain positive on domestic growth story. Retain BUY with a target price of Rs 340", says Emkay Global Financial Services research report.
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