Margins Hit By Fluctuating Commodity Costs: Havells’ Anil Rai Gupta
The electrical equipment maker’s net profit rose 4.7 percent sequentially to Rs 179 crore in the July-September period.
Havells India Ltd.’s operating margins for the quarter ended September were affected by sharp volatility in commodity costs, said its Chairman and Managing Director Anil Rai Gupta.
“The comparison (sequentially) wouldn’t be normal as there were huge fluctuations in the commodity prices as compared with one-time gains made last quarter,” Gupta said in an interaction with BloombergQuint. “Otherwise, there has been a healthy volume growth 20 percent in the cables and wires business.”
The electrical equipment maker’s net profit rose 4.7 percent sequentially to Rs 179 crore in the July-September period. Gupta said it was a muted season for the air-conditioning industry due to intermittent rains in summer, which affected sales and growth.
Other Highlights (QoQ)
- Revenue up 23.3 percent to Rs 2,191 crore.
- EBITDA up 2 percent at Rs 263 crore.
- Operating margin at 12 percent versus 14.5 percent.
- Gross margins down 400 basis points at 38.3 percent.
Watch the full interaction: