What do Havells' Q2FY17 results say ?

Havells India Ltd., has come out with very good set of numbers for Q2FY17 with the net revenue growth of 9% YoY to INR 14.5 bn, mainly boosted by notable growth of 22% YoY in company’s electrical consumer durable (ECD) segment.

Sluggish housing and industrial demand ensured that the revenue growth in Switchgears (5% YoY) and Cables & Wires (flat YoY) was muted.

Lighting & fixtures demonstrated 9% YoY revenue growth, led by 22% growth in lighting (ex-CFL).Core EBITDA for Havells stands at INR 2.1 bn (14.5% EBITDA margin) compared to INR 1.9 bn (14.1% margin) in Q2FY16.

Havells Switchgears has registered a revenue growth of 5% YoY, to INR 3.5 bn in Q2FY17 from INR 3.3 bn in Q2FY16. Revenue from Cables & Wires was flattish YoY, at INR 5.6 bn. Lighting & Fixtures has registered a growth of 9% YoY, with revenue growing to INR 2.1 bn in Q2FY17 from INR 1.9 bn in Q2FY16.

With growth expected in housing demand and higher discretionary spending related to payouts of Seventh Pay Commission and healthy monsoon the macro developments augur well for Havells.

Havells is trading at Rs 414.50 per share, up by 1.25 per cent or Rs 5.20 per share on Friday.