Havells disappoints

Havells India is among the top five three losers on the BSE post its disappointing Q2FY22 earnings. It opened over 3% lower at Rs.1361 and going down further by 10% to hit an intraday low at Rs.1264.85. Its 15% LC for the day stands at 1264.85.

The company posted a 7% (YoY) decline in consolidated net profit at Rs.302 crore on a 32% rise in revenue from operations at Rs.3238 crore, on the back of healthy performance from the cable, switchgear, electrical consumer durable, Lloyd and lighting segment.

The total expenses rose 36% and EBITDA margin declined 338 bps to 13.8% (YoY). The company said continued volatility in commodity prices impacted cable margins. Adequate price increase in Lloyd has been challenging due to the hyper competitive environment. Margins were further impacted by under absorption of overheads due to lower production.