Havells India Limited (HAVELLS) Q4 03/04 earnings summary

Executive summary

• FY04 turnover rose 43% to Rs.41,922.40 lacs; net profit increased from Rs.895.97 lacs to Rs.2,096.11 lacs, a reported increase of more than 130%.

• Expansion into fans, CFLs and lighting fixtures broadened the product range; exports reached over 40 countries, supported by new Dubai and Bangladesh offices.

Financial highlights

• Net sales, after excise, were Rs.36,294.64 lacs vs Rs.25,247.63 lacs; other income was Rs.759.97 lacs vs Rs.421.29 lacs.

• PBT was Rs.3,010.51 lacs vs Rs.1,418.60 lacs; tax expense was Rs.914.40 lacs vs Rs.522.63 lacs; PAT was Rs.2,096.11 lacs vs Rs.895.97 lacs.

• Net profit after interest, before depreciation and tax, reached Rs.3,274.77 lacs vs Rs.1,650.67 lacs; interest expense was Rs.1,197.22 lacs vs Rs.1,044.13 lacs.

• Other income included Rs.333.32 lacs profit on investment sales, including Rs.225.06 lacs from the sale of the Standard Electricals stake.

Outlook and guidance

• Management expected three new ventures—fans, CFLs and lighting—to support strong growth in FY05; FY04 was the first operating year for these ventures.

• Fan division targeted a 10% share of the organized fan market by 2005, using existing production infrastructure in domestic and international markets.

• Management anticipated economic growth above 8% in the current year and expected rising domestic demand and exports to support the electrical and electronic industries.

• International expansion remained a priority, with exports to over 40 countries and plans for further overseas branches or liaison offices.