Havells Share Price in Focus: Q2 FY 2025 Results Announced

Havells India Ltd. reported a 9.5% increase in net profit for the second quarter of FY25, ending on September 30, 2024. The company’s net profit stood at ₹273 crore, compared to ₹249 crore in the same period the previous year. This solid performance was accompanied by a 16% rise in revenue, with the company reporting ₹4,533 crore in revenue from operations, up from ₹3,891 crore in Q2 FY24.

While the overall financial performance was strong, Havells India’s EBITDA growth was modest at 1.7%, reaching ₹380 crore for the quarter. The company’s margins were affected by significant volatility in commodity prices, which particularly impacted the cable segment. The contribution margins from this segment faced downward pressure due to the rising cost of raw materials, which the company flagged in its regulatory filings.

The switchgear segment delivered decent growth in Q2 FY25, with revenue rising 4% year-on-year to ₹551 crore. Domestic switchgear saw stable demand, while industrial switchgear (IP) growth was impacted by a high base effect from large institutional orders in the same quarter last year. Despite this, the company maintained a stable performance in the segment.

The cable segment significantly contributed to Havells’ Q2 performance, registering a 23% year-on-year revenue growth, amounting to ₹1,805 crore. This growth was largely driven by strong volume growth in wires, further supported by spillover demand from Q1 destocking activities. This robust performance in the cable segment offset some of the pressures felt elsewhere in the business due to rising input costs.

Havells also saw sustained volume growth in its lighting segment, which benefited from gradually stabilising prices. Additionally, the electrical consumer durables (ECD) segment performed well, aided by strong festive demand for products such as fans, small domestic appliances (SDA), and water heaters. However, this festive demand also led to the advancement of advertising and promotional spending into the second quarter, as noted in the company’s investor presentation.

Havells Share Price Performance

On October 17, 2024, Havells India’s share price was trading at ₹1,790.25 as of 2:28 PM, marking a decline of 7.69% over the day. The stock faced downward pressure due to investors expressing concerns over the impact of high commodity prices on margins.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.