Havells India Limited (HAVELLS) Q4 96/97 earnings summary

Executive summary

• FY1996-97 turnover rose 75% to Rs. 4,985.48 lakh; net profit increased 39% to Rs. 230.17 lakh.

• Despite investment commitments for new projects, directors recommended a dividend of Rs. 1.50 per fully paid Rs. 10 share.

Financial highlights

• Gross sales were Rs. 4,985.48 lakh vs Rs. 2,856.61 lakh; net sales after excise were Rs. 4,268.24 lakh vs Rs. 2,434.25 lakh.

• Profit before tax was Rs. 289.81 lakh and net profit Rs. 230.17 lakh, vs Rs. 245.05 lakh and Rs. 165.07 lakh, respectively, in FY1995-96.

• Interest expense increased to Rs. 212.46 lakh from Rs. 117.50 lakh; depreciation rose to Rs. 54.69 lakh from Rs. 37.03 lakh.

Outlook and guidance

• MCB production capacity expansion supported a plan to increase MCB division turnover by nearly 50% in FY1997-98.

• Cable division expected a steep turnover increase, supported by ISO 9001 certification, Havells-branded cable launches and dealer response.

• Directors cited strong recovery signs in the first months of FY1997-98 after a recessionary period.