Havells India Ltd. reported a strong financial performance in the second quarter of the fiscal year 2024 (Q2FY24), showing consistent growth both in terms of revenue and profitability. The company’s profit for the quarter rose by 5.6% year-on-year (YoY) to Rs 267.7 crore, compared to Rs 249.08 crore in the same period last year.
Revenue from operations surged 16.4% YoY to Rs 4,539.31 crore from Rs 3,900.43 crore in Q2FY23, driven by a rise in demand across various segments. In addition, other income stood at Rs 92.89 crore, up from Rs 52.48 crore in the previous quarter, contributing to the total income of Rs 4,632.20 crore.
Key Financial Highlights (Q2 FY24 vs Q2 FY23):
- Total income: Rs 4,632.20 crore, a significant jump from Rs 3,952.81 crore YoY.
- Profit before tax (PBT): Rs 363.26 crore, compared to Rs 458.04 crore in Q2FY23.
- Total expenses: Increased to Rs 4,268.94 crore, reflecting higher costs of raw materials, traded goods, and employee benefits.
Segment-wise Performance:
Havells’ strong revenue growth was supported by various segments, especially in the consumption of raw materials, which accounted for Rs 2,460.52 crore in Q2 FY24. The employee benefits expense also saw an increase, rising to Rs 464.60 crore from Rs 461.85 crore YoY.
However, the company faced a slight dip in profitability as other expenses rose, including advertisement and sales promotion costs, which stood at Rs 130.66 crore, down from Rs 172.37 crore in the previous quarter.
Tax and Profit After Tax:
Havells’ income tax expense amounted to Rs 95.49 crore, with a current tax of Rs 90.59 crore and deferred tax of Rs 4.90 crore. After tax expenses, the company’s profit for the period was Rs 267.77 crore, showing a steady growth of 5.6% from Rs 249.08 crore reported in Q2FY23.
Earnings per Share (EPS):
For the quarter ended September 30, 2024, the basic and diluted earnings per share (EPS) stood at Rs 4.28, compared to Rs 3.97 in the corresponding period last year.
Havells’ solid performance in Q2FY24 is a testament to its continued growth trajectory, with robust revenue figures despite facing higher input costs. Investors will be looking for sustained profitability and strategic initiatives in the coming quarters to maintain this growth momentum.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial advice. Readers are advised to consult with a financial advisor before making any investment decisions.
