📢 5 STEPS TOWARDS WEALTH 🚀 The Indian Stock Market Way
*Havells India* Limited's Q1 FY25 results: Eagle’s Eye View:
### *Company Overview*
Havells India Limited is a leading Fast Moving Electrical Goods (FMEG) company and a major power distribution equipment manufacturer with a strong global presence. The company's products range includes industrial & domestic circuit protection devices, cables & wires, motors, fans, modular switches, home appliances, air conditioners, electric water heaters, and power capacitors.
### *Q1 FY25 Highlights*
- **Net Revenue**: Rs 5,798 crores, a 20% YoY growth from Rs 4,824 crores in Q1 FY24. Extra ordinary and more then estimated.
- **EBITDA**: Rs 576 crores, a 43% YoY growth from Rs 402 crores in Q1 FY24.
- **Profit After Tax (PAT)**: Rs 411 crores, a 43% YoY growth from Rs 287 crores in Q1 FY24. Good Profit growth and little better than estimate.
- **EBITDA Margin**: 9.9%, up from 8.3% in Q1 FY24.
- **PAT Margin**: 7.1%, up from 6.0% in Q1 FY24. Margin in expansion y-o-y but fell by 1.1% Q-o-Q.
### *Consolidated Sales and Profit Growth*
- **Net Revenue Growth**: 20% YoY.
- **EBITDA Growth**: 43% YoY.
- **PAT Growth**: 43% YoY.
### *Margin Expansion*
- **EBITDA Margin**: Increased to 9.9% from 8.3% YoY.
- **PAT Margin**: Increased to 7.1% from 6.0% YoY.
### *Segmental Growth*
- **Switchgears**: Rs 576 crores, 6% YoY growth.
- **Cables**: Rs 1,521 crores, 2% YoY growth.
- **Lighting & Fixtures**: Rs 386 crores, 5% YoY growth.
- **Electrical Consumer Durables**: Rs 1,055 crores, 20% YoY growth. Strong growth.
- **Others**: Rs 336 crores, 36% YoY growth.
- **Lloyd Consumer**: Rs 1,924 crores, 47% YoY growth. Strong growth in Lloyd Consumer.
### *Financial Ratios*
- **Operating Profit Margin (OPM)**: 9.9%, improved from 8.3% in Q1 FY24.
- **Return on Equity (ROE)**: 19.3%, improved from 17.3% in Q1 FY24.
- **Return on Capital Employed (ROCE)**: 26.5%, improved from 23.8% in Q1 FY24.
- **Current Ratio**: 1.7, slightly decreased from 1.8 in Q1 FY24.
- **Debtor Days**: 21 days, increased from 17 days in Q1 FY24.
- **Inventory Days**: 63 days, decreased from 69 days in Q1 FY24.
- **Creditor Days**: 57 days, increased from 50 days in Q1 FY24.
### *Peer Group Comparison (Havells vs. Competitors)*
Havells stands strong in its industry with significant growth in revenue, profit margins, and segmental contributions. In comparison to its peers, like Crompton Greaves and Bajaj Electricals, Havells shows superior growth in the electrical consumer durables and Lloyd Consumer segments, driven by robust summer demand and strategic brand investments.
### *Industry Outlook for Growth*
The electrical equipment industry in India is poised for significant growth, driven by:
- **Urbanization**: Increasing urban population demands more infrastructure development and electrical equipment.
- **Government Initiatives**: Schemes like 'Make in India' and smart city projects are boosting the demand for electrical goods.
- **Technological Advancements**: Innovations in energy-efficient products are creating new market opportunities.
- **Renewable Energy**: Growing focus on renewable energy sources is enhancing the demand for efficient electrical products.
### *Company's Future Outlook*
Havells India Limited is well-positioned for future growth with:
- **Strong Brand Presence**: Continued investment in brand building and expansion of product lines.
- **Innovation and R&D**: Focus on innovation and R&D to develop energy-efficient and technologically advanced products.
- **Market Penetration**: Expanding market reach in both urban and rural areas.
- **Capacity Expansion**: Investments in increasing manufacturing capacity to meet the growing demand.
- **Strategic Acquisitions**: Exploring strategic acquisitions to enhance product portfolio and market share.
This comprehensive analysis highlights Havells' strong performance in Q1 FY25 and its strategic initiatives to sustain and enhance growth in the future.
Disclosure: Do not consider this document as a recommendation, this update was for Result analysis.
