Havells Stock Hits A Record High After Q3 Results Beat Estimates
Shares of Havells India Ltd. jumped to a record high after the consumer durables products maker beat analysts’ estimates in the quarter ended December.
The company’s revenue rose 39% year-on-year to Rs 3,165 crore in the October-December period, according to a statement. That compares with the Rs 2,627-crore consensus estimate of analysts tracked by Bloomberg.
The growth across categories, the company said in an investor presentation, came on the back of an expanding distribution footprint, a robust supply chain and gains from the unorganised sector. Also, improvement in consumer sentiment, festive season and reduction in Covid-19 cases, coupled with increased penetration in smaller towns and a higher rural reach helped. “Supply chain disruptions faced by suppliers with high import dependence have further supported market share gains.”
Key highlights (year-on-year)
- Net profit rose 75% to Rs 349.1 crore, compared with the estimated Rs 251.3 crore.
- Earnings before interest, tax, depreciation and amortization, surged 89% to Rs 507.2 crore. Analysts had pegged the operating profit at Rs 380 crore.
- Ebitda margin expanded 410 basis points to 16%.
- The company’s consumer and residential portfolio registered close to 40% growth, while industrial and infra segment saw growth in mid-teens.
The air-conditioning segment saw significant growth due to perceived change in industry dynamics consequent to import prohibitions, better availability from own production, wider network coverage through regional retailers and select pre-buying, the company said in the investor presentation.
Segmental performance (year-on-year)
- Switchgears segment revenue rose 32% to Rs 437.1 crore.
- Cables revenue grew 27% to Rs 905.2 crore.
- Lighting & fixtures revenue rose 28% to Rs 353.3 crore.
- Electric consumer durables revenue rose 46% to Rs 783 crore.
- Lloyd consumer revenue grew 70% to Rs 511.6 crore.
Shares of Havells India gained as much as 6.3% to a record high of Rs 1,084.4 apiece. The stock is up for the fourth straight day. Of the 41 analysts tracking the stock, 12 recommend a ‘buy’, 18 suggest a ‘hold’ and 11 have a ‘sell’ rating. The stock is trading 22.6% higher than its Bloomberg consensus 12-month price target of Rs 832.1 apiece.
Watch the interview with Havells Chairman Anil Rai Gupta: