Havells India records marginal Q3 profit at Rs 288 crore

Havells Q3 profit: Havells India, a prominent home appliances manufacturer, reported a modest increase in its third-quarter profit as robust demand for wires and cables offset slower growth in consumer goods sales. The company's profit for the quarter ended December 31 stood at Rs 288 crore, compared to Rs 284 crore in the same period last year.

The revenue from Havells' primary segment, cables and wires, witnessed a significant 11.4 per cent growth, contributing approximately 36 per cent to the total revenue. This surge in the cables and wires segment compensated for the sluggish growth in consumer goods sales, as consumers reduced non-essential spending due to elevated prices of essential goods.

However, the Lloyd segment of Havells, dealing with air-conditioners and washing machines, reported a widened loss of Rs 65.17 crore, compared to the previous year's loss of Rs 59.63 crore. Despite a reduction in copper prices, total expenses for the company increased by 7.6 per cent.

Havells attributed the rise in total expenses to increased advertising and sales promotion costs during the country's festive season, which included Diwali and Christmas.

In contrast, rival Polycab India experienced a 15.4 per cent rise in third-quarter profit last week, primarily driven by strong sales in its cables and wires business.

Havells announced an interim dividend of Rs 3 per share, with its shares closing down by 4.5 per cent ahead of the results.

The company faces the dual challenges of fluctuating consumer goods sales and intensified competition, emphasising the need for strategic measures to maintain its market position. The impact of these challenges on Havells' future financial performance remains a key area of interest for industry observers.

(With PTI inputs.)