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The company's earnings visibility may improve by virtue of a strong order book and a shift towards product premiumisation.
Both the companies have been industry leaders and steady performers in the consumer electricals space over the years. This can be predominantly attributed to their robust fundamentals, clearly defined future strategies, and strong execution capabilities.
Havells India's Q3 earnings are in-line with street estimates with a 30 percent rise in the topline and a similar jump in the profits also. In an interview with CNBC-TV18, Anil Rai Gupta, CMD of Havells India spoke about the results and his outlook for the company.
Structural demand in consumer durables was weak due to GST, said Anil Rai Gupta, CMD, Havells.
EBITDA margin may improve quarter-on-quarter due to better product mix (higher revenue contribution from high-margin switchgear segment) and moderate price increase across segments.
Expectations were running low on account of pre-GST implementation adjustments in the quarter, and overall, the Nifty earnings have not resulted in any incremental negative surprise.
Havells India posted disappointing numbers for Q1FY18. The operational front performance was weak. “This was a special quarter because of the transition of value added tax (VAT) regime to the goods and services tax (GST) regime. Things should come back to normal in the coming quarters,” Anil Rai Gupta, CMD of Havells India told CNBC-TV18.
In an interview to CNBC-TV18, Anil Rai Gupta, CMD of Havells India spoke about the results and his outlook for the company.
Havells India CMD, Anil Rai Gupta, says the impact of demonetisation may not be seen in the fourth quarter. The electrical equipment manufacturer reported increased profit at 27.5 percent year-on-year in the quarter ended 2016.
Net Sales are expected to decrease by 4.4 percent Q-o-Q (up 3.3 percent Y-o-Y) to Rs 1390 crore, according to HDFC Securities.
Electrical equipments manufacturer Havells India is expected to see limited impact of demonetisation on its quarterly earnings, analysts say.
Electrical equipment manufacturer Havells India's second quarter profit is likely to jump 28 percent year-on-year to Rs 155 crore, according to average of estimates of analysts polled by CNBC-TV18. Likely fall in interest cost after selling loss making Sylvania business and higher other income may support bottomline.
Anil Rai Gupta, Chairman and Managing Director, Havells India, said all of the company's verticals, except cables, saw 20 percent growth in the quarter.
With a major focus on cost efficiencies and price management, they are confident of double-digit growth for the company going forward, said Anil Rai Gupta, CMD, Havells India
While India will be the main focus, the company is also looking to increase presence in West Asia, Africa and South East Asia, Anil Rai Gupta, CMD, Havells India tells CNBC-TV18.
Operating profit (earnings before interest, tax, depreciation and amortisation) during the quarter may increase 7.2 percent to Rs 193 crore but margin may contract 60 basis points to 13.9 percent compared to year-ago period.
Anil Rai Gupta, CMD, Havells India is hopeful of an improvement in growth in the Latin America business going forward.
Operating profit during the quarter may fall 1.7 percent to Rs 180 crore but margin may expand 57 basis points to 14 percent in quarter gone by.
In an interview with CNBC-TV18, Anil Rai Gupta, CMD of Havells India said the demand is expected to pick-up in the second half of this year.
Anil Rai Gupta, Chairman and Managing Director of Havells India says he is hopeful about interest rates falling, inflation coming off, and demand picking up in residential, commercial as well as industrial sector.
Havells India's third quarter standalone profit after tax is expected to decline 1.1 percent year-on-year to Rs 120 crore, according to the average of estimates of analysts polled by CNBC-TV18.
"We will maintain this 3.5 percent expense on the advertising and sales promotion," Anil Rai Gupta, Joint MD, Havells India said.
Total income from operations may grow 15.2 percent to Rs 1,352 crore from Rs 1,174 crore during the same period on account of cables & wires and consumer durables businesses.
Electrical equipment manufacturer Havells India will announce its third quarter earnings (October-December) today. PAT is seen up 20.9 percent at Rs 114.4 crore versus Rs 92.7 crore.
Anil Rai Gupta, Joint MD, Havells India expects to achieve around 12 percent overall growth for the entire year, higher than 9-10 percent guided earlier. He is hopeful that for the entire year overall margins would be at about 13.5-14 percent.