Havells India beats Q4 profit estimates on strong demand for appliances

Home appliances maker Havells India reported fourth-quarter earnings above market expectations on Tuesday, boosted by heightened demand for its products such as room air conditioners (RACs) and fans.

WHY IT'S IMPORTANT

Consumer expenditure on electrical appliances tends to rise as temperatures increase and consumers prepare for warmer weather, leading to an uptick in spending on cooling products such as room air conditioning units, air coolers and fans.

Also, demand for winter products like water heaters saw a boost due to extended periods of cold weather in certain regions of India.

The company is the first among its peers to report quarterly results.

BY THE NUMBERS

The Noida, Uttar Pradesh-based company's net profit rose to 4.49 billion rupees (about $54 million) for the three months ended March 31, beating analysts' expectations of 3.94 billion rupees.

Its revenue from operations rose 12% to 54.34 billion rupees, while total expenses were up 11.4%.

Revenue from Havells' electrical consumer durables segment, which includes fans, home appliances and water heaters, grew by about 22% year-on-year.

Its Lloyd brand, which sells air conditioners and washing machines, saw a growth of 6%.

For more details on Havells India results, click GRAPHIC

** All values in the graphic are expressed in percentages (%) KEY QUOTES

The company said the Lloyd brand is advancing on its path of growth and profitability, with a two-year annual revenue compound annual growth rate (CAGR) of about 30%.

The cables and wires segment sustained its growth momentum, supported by ongoing infrastructure-driven demand.

The company said its overall revenue was, however, impacted by persistent price deflation.

Growth in the electrical consumer durables segment was driven by summer-led demand, it added.

($1 = 83.3820 Indian rupees)

(Reporting by Navamya Ganesh Acharya in Bengaluru; Editing by Sohini Goswami)