Havells Q4FY23 PAT flat at Rs358cr as electric consumer durables vertical sees pressure

Havells India reported 9.78% growth in total sales revenues for the March 2023 quarter on consolidated basis at Rs4,859cr. On a sequential basis, the revenues were up by 17.73%. In fact, across the verticals, the only vertical to show fall in sales was electric consumer goods. Switchgears saw sales growth of 27% while the Lloyds business saw growth of 32%. Other businesses like cables, lightings and fixtures saw single digit growth in sales.

Even in terms of contribution margin basis, it was the electrical consumer business and the miscellaneous business that saw lower contribution margin on yoy basis. Other businesses like switchgears, cables, lightings, and fixtures saw improved contribution on yoy basis. For the full year also, the EBITDA was lower by 9% yoy, while the PAT margins for the full year were also lower by 220 bps at 6.40%.

Financial highlights for Mar-23 compared yoy and sequentially

For the quarter, operating margins were lower mainly due to the consumer business. The debtor days and the inventory days have increased showing pressure on the working capital front. This has led to a fall in the current ratio, which can be largely explained by the supply chain constraints that most companies in India are facing.