Hold Havells India; target of Rs 253: ICICIdirect

ICICIdirect.com's report on Havells India

Havells India’s (HIL) standalone revenues increased ~5% YoY to Rs 1247 crore in Q3FY15 supported by ~12% YoY growth in electronic consumer durables (ECD) segment. However, slackness in industrial activities hit revenue growth of cable & switchgear segments that grew 4% YoY and 6% YoY, respectively. Lighting segment recorded a flat performance due to de-growth in non-LED segment

Change in product mix coupled with saving in raw material cost and advertisement & promotion expenses (A&P) helped an improvement in EBITDA margins by 11 bps YoY to 14.5%

Decline in other income, along with higher depreciation charges and tax rate hit the bottomline as it recorded a decline of ~4% YoY during Q3FY15 The performance of Sylvania remained under pressure in Q3FY15 as revenues declined ~1% YoY to €110.8 million while it reported an operating loss of €0.5 million after the €6.1 million provisioned for pension liabilities and one-time expenses of €2.9 million. It recorded a loss of €10.7 million against net profit of €1.7 million during Q3FY14

Read More