Havells India’s Profit Jumps By 45% In Q2FY14

Havells India announces its Q2FY14 Standalone results today (October 30, 2013). The topline of the company witnessed 22% growth to Rs 1166 crore in Q2FY14 as compared to Rs 958 crore in Q2FY13. In same duration, bottomline of the company surged by 45% to Rs 125 crore.

The company has four main business segments, Switchgears, Cable, Lighting & Fixtures and Electrical Consumer Durables where revenue improved by 23 %, 25%, 15% and 19% respectively.

During the quarter, total expenses of the company (Excluding the finance cost) elevated 20%  to Rs 1020 crore as the raw material cost rose by 25% to Rs 669 crore while employee benefits expenses and other expenses  increased  by 22% and 10% respectively.

Havells’ EBITDA has surged by 31% to Rs 162 crore in Q2FY14 as compared to Rs 123 crore reported in Q2FY13. In same period, EBITDA margin elevated by 100 basis points to 13.86% from 12.86%.Company was able to post such remarkable figures for Q2FY14 as its other income witnessed magnificent growth of 301% to stand at Rs 7 crore while the finance cost dipped by 39% to Rs 6 crore on YoY basis.

On YTD basis stock of the company has moved up by 15% to Rs 735.5 with TTM price to earnings ratio of 22x. Considering the present growth of the company, one can expect its stock to do well at this juncture.