Havells India Limited (HAVELLS) Q4 01/02 earnings summary

Executive summary

• FY02 turnover rose 30% to Rs 22,203.36 lacs and net profit rose 38% to Rs 857.36 lacs; results include businesses transferred under a scheme effective April 1, 2001, limiting YoY comparability.

• Restructuring consolidated switchgear, MCCB and ECS businesses; the broader portfolio and distribution network supported expansion, while international marketing became a strategic focus.

Financial highlights

• Gross sales Rs 22,203.36 lacs vs Rs 17,108.20 lacs; net sales Rs 19,349.49 lacs vs Rs 14,867.16 lacs.

• PBT Rs 1,296.16 lacs vs Rs 999.25 lacs; net profit Rs 857.36 lacs vs Rs 621.04 lacs.

• Interest expense Rs 928.82 lacs vs Rs 633.35 lacs; depreciation Rs 190.93 lacs vs Rs 119.42 lacs.

• Other income Rs 257.93 lacs vs Rs 184.52 lacs; proposed dividend Rs 2.50/share vs Rs 2.00/share.

Outlook and guidance

• Focus on exporting products through international partners, with management targeting broader international market penetration and stronger market leadership.

• Outlook cited expanding domestic electricity and industrial demand, with exports expected to benefit from competitive pricing and the large home market.

• Product priorities include technology upgrades, new product introductions, cost reduction and continued R&D for import substitution and quality improvement.