Havells India Q2 Review - Higher Input Costs Weigh On Margin: ICICI Direct
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ICICI Direct Report
Havells India Ltd. reported revenue growth of 31% YoY (~12% volume growth excluding cable and wire business). The topline growth was driven by multiple factors such as favourable base of industrial products, price increases, dealer addition (focus on expansion in rural markets) and new launches.
Delay in passing on of higher input prices in the cable and Lloyd business dragged overall gross margin by ~600 bps YoY. That resulted in ~340 bps YoY fall in Ebitda margin for Havells in Q2.
Profit after tax declined ~7% YoY, mainly due to higher base (includes Rs 43 crore of additional income from sale of asset) and lower Ebitda margin.
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