HDFC Securities: Havells - Sharp Margin Recovery In Q2; Lloyd Back On Track
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HDFC Securities Report
Havells India Ltd. reported a stellar Q2 FY21 with a massive jump in operating margin.
Core business posted revenue/Ebit growth of 6/45% YoY. Lloyd clocked 56% YoY revenue growth with 2% Ebit margin versus 25% loss YoY.
We were also expecting quicker recovery in margin than revenue; however, the magnitude of margin recovery beat ours as well as the street’s expectation.
We believe some of the cost will restore in H2 FY21 (advertisement and promotion, employee, etc.). Hence, margin expansion will be healthy, but unlike Q2’s.
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