Havells India Limited (HAVELLS) Q4 97/98 earnings summary

Executive summary

• FY1997-98 turnover rose ~25% to Rs 6,212.15 lakh gross sales; net profit fell to Rs 147.70 lakh from Rs 230.17 lakh.

• Directors recommended a 15% dividend, or Rs 1.50 per fully paid equity share, and expressed confidence in the current year's results.

Financial highlights

• Net sales were Rs 5,261.22 lakh, up from Rs 4,268.24 lakh; other income was Rs 34.12 lakh versus Rs 14.26 lakh.

• Net profit after interest but before depreciation and tax was Rs 299.03 lakh, versus Rs 344.64 lakh; profit for the year was Rs 147.70 lakh versus Rs 230.17 lakh.

• Materials cost rose to Rs 2,819.91 lakh from Rs 2,451.02 lakh; financial expenses increased to Rs 295.12 lakh from Rs 212.46 lakh.

Outlook and guidance

• Directors expected commendable results in FY1998-99; cable sales were targeted to double again, supported by the dealer network and expanded facilities.

• MCB exports through a JV partner were planned for the current year, with the stated aim of increasing volume and strengthening domestic and international brand positioning.

• Meter demand showed positive signs after weak State Electricity Board purchases; product development for additional market segments was underway to reduce reliance on SEBs.