Havells India Says Consumer, Residential Demand Augurs Well For Coming Quarters
Havells India Ltd. gained market share in certain segments amid disruptions caused by the coronavirus pandemic.
The market is looking better than what the expectation was. Consumer and residential demand, which rose in mid-teens, has been satisfying and augurs well for the coming quarters, according to Anil Rai Gupta, chairman and managing director at the company.
Besides, Havells India has a strong distribution channel, and can take up contract orders from global clients, he told BloombergQuint’s Niraj Shah in an interview. The government’s Atmanirbhar Bharat scheme, Rai Gupta said, has come at the right time for Indian air-conditioner makers. Last year, Lloyds had reduced its dependence on raw material from China to zero as the company set up its own manufacturing facilities. Havells is an integrated manufacturer, and produces 95% of the products it sells.
The company reported a 10% year-on-year rise in revenue at Rs 2,451.8 crore in the quarter ended September. Its margin improved 670 basis points to 17.2%, aided by lower other expenses and advertisement costs.
Key Highlights from BloombergQuint’s conversation with Anil Rai Gupta:
- Havells India will look to keep rising bad costs under check.
- From manufacturing point of view, disruptions have not been felt but supply-side disruptions remain in some pockets.
- Looking at plans for capital expenditure in the next six months.
- Expecting revenue to improve in the third quarter than the second quarter.
Watch the full interview here: