Havells posted Q1FY23 numbersHAVELLS - 1281 Change: -13.05 (-1.01 %)
News: Havells’ revenue grew by ~63% YoY to Rs 4230 crore in Q1FY23 on a lower base of covid impacted Q1FY22. EBITDA margin declined by 505 bps YoY to 8.5% due to fall in gross margin by ~670 bps. PAT came in at ~Rs 242 crore, up marginally by ~4% YoY.
Views: We believe Havells has reported an encouraging three-year revenue CAGR of 16 %, led by new product launches and market share gains. However, the company's gross margin was under pressure due to the use of high-cost inventories and delay in passing of price hikes in the Lloyd segment. In spite of robust topline growth of 119% YoY, the company's Lloyd segment recorded an EBIT level loss of Rs 56 crore during Q1FY23 (Vs Rs 10 crore of profit in Q1FY22). We are looking forward to management's comments on the overall demand outlook and future margin guidance for Lloyd.