Havells India Limited (HAVELLS) Q4 02/03 earnings summary

Executive summary

• FY2002-03 sales rose 32% to Rs.29,308.24 lacs; net profit increased to Rs.895.97 lacs from Rs.857.36 lacs, while EPS declined to Rs.15.46 from Rs.17.17.

• Domestic switchgear leadership, rapid meter and cable growth, and expansion of exports supported performance; consolidated turnover reached Rs.600 crore, including subsidiary operations.

Financial highlights

• Gross sales Rs.29,308.24 lacs; net sales after excise Rs.25,247.62 lacs, versus Rs.22,203.36 lacs and Rs.19,349.49 lacs, respectively, in FY2001-02.

• PBT Rs.1,418.60 lacs versus Rs.1,296.16 lacs; net profit Rs.895.97 lacs versus Rs.857.36 lacs.

• Other income rose to Rs.421.61 lacs from Rs.257.93 lacs; interest expense increased to Rs.1,044.13 lacs from Rs.928.82 lacs.

• Consolidated FY2002-03 sales and works contract revenue was Rs.33,491.19 lacs and PAT Rs.932.61 lacs; consolidated EPS was Rs.16.09, with no prior-year consolidated comparison.

Outlook and guidance

• International marketing and exports are strategic priorities; export efforts are being advanced through international partners, with the switchgear division described as poised for international growth.

• Meter growth plans include product innovation and pursuing demand from electricity utilities, with electronic meters and anti-tampering systems under development with Duke Arnics Electronics.

• Entry into the electrical-fan market was under exploration; the addressable market was estimated at Rs.1,450 crore.

• ISO 14001 implementation was planned for FY2003-04, alongside continued product upgrades, import substitution and new product development.