Havells India profits surge 9.5% in Q2, festive shift boosts ad spends
Lloyd reported a steady performance in the non-seasonal quarter, with a contribution margin improvement to 14% from 3.9% last year and 13.2% in the June quarter.
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Havells India's net profit rose 9.5% to Rs 273 crore in Q2FY25 from Rs 249 crore in Q2FY24. Revenue from operations increased 16% to Rs 4,533 crore from Rs 3,891 crore. EBITDA grew 1.7% to Rs 380 crore.
Havells highlighted that high commodity price volatility impacted contribution margins, particularly in the cables segment, and that the shift in the festive season led to the advancement of advertising spends into the September quarter.
Lloyd reported a steady performance in the non-seasonal quarter, with a contribution margin improvement to 14% from 3.9% last year and 13.2% in the June quarter. Segment revenue increased 19% to Rs 587 crore from Rs 493 crore last year.
High commodity price volatility impacted contribution margins, especially in the cable segment. Decent growth in switches and domestic switchgear offset the impact of higher base due to large institutional orders last year in the industrial switchgear (IP) segment. The switchgear segment reported revenue of Rs 551 crore, up 4% YoY.
The Cable segment's revenue grew 23% YoY to Rs 1,805 crore in Q2FY25, driven by strong wire volume growth and spillover from Q1 destocking. The Lighting segment saw robust volume growth and gradually stabilizing pricing.
The ECD segment's broad-based performance was supported by festive season-led demand for fans, SDA, and water heaters. The festive season shift led to the advancement of A&P spending to Q2. As of 2:50 pm on October 17, Havells India shares were trading 4% lower at Rs 1,859 apiece.
