Havells India Limited (HAVELLS) Q3 24/25 earnings summary

Executive summary

• Consumer, industrial, and infrastructure segments delivered healthy performance, but commodity fluctuations moderated overall revenue growth, especially in domestic wires.

• Revenue from operations for Q3 FY25 was Rs. 4,888.98 crore, up from Rs. 4,413.86 crore in Q3 FY24, reflecting year-over-year growth.

• Net profit for Q3 FY25 stood at Rs. 277.96 crore, compared to Rs. 287.91 crore in Q3 FY24.

• Announced INR 480 crore CapEx for a new refrigerator manufacturing facility in Ghiloth, Rajasthan, aiming to become a full-stack consumer durable player.

• Investments in brand building and talent remained elevated but are expected to stabilize; management remains positive on growth and margin improvement in coming quarters.

Financial highlights

• Lighting segment saw healthy volume growth of 13%-14% YoY, with price erosion bottoming out and margin improvement expected.

• Cables achieved 11%-12% volume growth, while wires saw a slight decline, resulting in flat overall volume growth for the segment.

• Appliances and water heaters posted strong growth, though appliances have lower contribution margins than fans or water heaters.

• Consolidated total income for Q3 FY25 was Rs. 4,953.31 crore, up from Rs. 4,469.75 crore in Q3 FY24.

• For the nine months ended December 31, 2024, revenue from operations reached Rs. 15,234.50 crore, up from Rs. 13,147.99 crore year-over-year.

Outlook and guidance

• Management expects normalization of switchgear margins and ECD margins in the coming quarters, targeting 24%-25% for switchgear and 12%-14% EBIT for ECD medium to long term.

• Restocking in wires and cables anticipated in Q4, with copper price increases and seasonal demand expected to support momentum.

• Ex-Lloyd EBITDA margins expected to return to 12%-13% by FY 2026.