{"id":166597,"date":"2025-01-23T04:50:31","date_gmt":"2025-01-23T09:50:31","guid":{"rendered":"https:\/\/44.250.171.167\/?p=166597"},"modified":"2025-02-03T06:52:37","modified_gmt":"2025-02-03T11:52:37","slug":"havells-q3-2024-2025-call-highlights-retail-expansion-backward-integration-margin-challenges","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/havells-q3-2024-2025-call-highlights-retail-expansion-backward-integration-margin-challenges\/","title":{"rendered":"HAVELLS Q3 2024-2025 Call Highlights: Retail Expansion, Backward Integration &#038; Margin Challenges!"},"content":{"rendered":"<p>Havells India Ltd., an Indian multinational electrical equipment company, in its Q3 earnings call highlighted a strategic transformation across multiple business segments, with challenges in switchgear margins and ongoing price erosion in lighting. The company mentioned that it\u2019s aggressively expanding into new sales channels like modern format retail and quick commerce, focusing on market share gains in consumer-facing categories. Lloyd brand remains a key growth focus, with plans to enter refrigerator and washing machine markets through backward integration and differentiated product offerings. Management remains cautiously optimistic about consumer demand, expecting margin normalization in Electrical Consumer Durables (ECD) and switchgear segments, targeting 12-14% EBIT margins by FY26.<\/p>\n<p>Havells reported mixed performance for 3Q, with the company&#8217;s consolidated net profit declining by 3% year-over-year, while revenue from operations increased by 10.76% and the company\u2019s performance was highlighted by healthy performance in consumer, industrial, and infrastructure segments, despite wire growth challenges. The company declared a 400% interim dividend and announced a INR480 crore investment in a new Rajasthan refrigerator manufacturing facility, targeting 14 lakh units capacity by Q2FY27. Despite margin pressures, the company expressed optimism about improved demand and margin scenarios in upcoming quarters.<\/p>\n<p>Continue Reading: Discover the Vital Insights from Havells India Ltd.&#8217;s Earnings Call!<\/p>\n<p><strong>Financial\/Operational Metrics:<\/strong><\/p>\n<ul>\n<li><strong>Revenue:<\/strong> INR4,889 crore, up 11% YoY.<\/li>\n<li><strong>Net Profit<\/strong>: INR278 crore, down 3% YoY.<\/li>\n<li><strong>Diluted EPS:<\/strong> INR4.44, down 3% YoY.<\/li>\n<li><strong>Operating Profit:<\/strong> INR426 crore, down 2% YoY.<\/li>\n<li><strong>Employee Benefits Expense:<\/strong> INR464.11 crores, up 22% YoY.<\/li>\n<li><strong>Ad and Sales Promotion Expenses:<\/strong> INR177.66 crores, up 1% YoY.<\/li>\n<\/ul>\n<p><strong>\u00a0<\/strong><strong>\u00a0<\/strong><\/p>\n<p><strong>Analyst Crossfire:<\/strong><\/p>\n<ul>\n<li><strong>Switchgear Margins &amp; Plant Relocation, B2C Margins &amp; Rural Demand (Ravi Swaminathan &#8211; Spark Capital, Chaitanya &#8211; Paterson)? <\/strong>Margins in the switchgear segment declined due to lower-margin project business and plant relocation. The contribution margin is expected to normalize at 38-40% in the coming quarters. Product mix changes have impacted B2C margins, but improved consumer demand should support better margins in the near term. Rural demand is not a significant factor for Havells<strong> (Anil Rai Gupta \u2013 CMD, Rajiv Goel &#8211; ED).<\/strong><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li><strong>Lighting Business Trends, Quick Commerce in Wires &amp; Cables (Natasha Jain &#8211; PhillipCapital)? <\/strong>Volume growth in lighting was 13-14%, but price erosion continues to impact revenues. Pricing pressures in premium chip-on-board (COB) technology were noted, though deflation is expected to bottom out soon. Destocking in the wire segment is reversing, with rising copper prices expected to drive restocking in Q4. Seasonal demand for underground cables should boost momentum<strong> (Anil Rai Gupta &#8211; CMD; Rajiv Goel &#8211; ED)<\/strong>.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li><strong>Domestic Appliances &amp; ECD Margins, Consumer Demand &amp; Summer Outlook (Sonali Salgaonkar &#8211; Jefferies): <\/strong>Growth in water heaters and domestic appliances improved segment performance, but contribution margins declined due to lower profitability in appliances compared to fans and water heaters. Consumer sentiment improved towards the end of the quarter, with positive channel sentiment for the upcoming summer season<strong> (Anil Rai Gupta &#8211; CMD)<\/strong>.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li><strong>Lloyd&#8217;s Profitability &amp; Backward Integration, Industrial Demand Resilience (Renu &#8211; IIFL Securities): <\/strong>Lloyd&#8217;s AC margins are expanding due to premiumization, though profitability in non-AC categories remains under pressure. Investments in a refrigerator manufacturing facility will help profitability in the long term. While consumer demand showed weakness, industrial and infrastructure demand remains strong, offsetting broader market challenges<strong> (Anil Rai Gupta &#8211; CMD)<\/strong>.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li><strong>Future Margin Targets, Employee Costs &amp; Market Share (Kunal Sheth &#8211; B&amp;K Securities, Praveen Sahay &#8211; PL Capital): <\/strong>Havells targets 12-13% EBITDA margins, ex-Lloyd, by FY26 as segment contributions normalize. Investments in employee expansion for consumer-facing channels have led to market share gains across categories. These costs are expected to normalize over time<strong> (Anil Rai Gupta &#8211; CMD; Rajiv Goel &#8211; ED)<\/strong>.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li><strong>Switchgear Margins &amp; Project Business, Cables &amp; Wires Growth (Charanjit &#8211; DSP Mutual Funds, Achal Lohade &#8211; Nuvama): <\/strong>Switchgear margins declined due to a higher proportion of lower-margin project business and plant relocation. Margins are expected to stabilize at 23-24%. Volume growth in cables was 11-12%, while wires saw a slight decline due to destocking. New capacity at the Tumkur plant will enhance growth potential<strong> (Rajiv Goel &#8211; ED)<\/strong>.<\/li>\n<\/ul>\n<p><strong>To get further Insights: <a href=\"https:\/\/app.asai.alphastreet.io\/test-drive\/transcript\/view\/abd63faf-fbee-53aa-a5f9-caa46f58520a\/earnings_conference\" target=\"_blank\" rel=\"noopener\">Click Here<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Havells India Ltd., an Indian multinational electrical equipment company, in its Q3 earnings call highlighted a strategic transformation across multiple business segments, with challenges in switchgear margins and ongoing price erosion in lighting. The company mentioned that it\u2019s aggressively expanding into new sales channels like modern format retail and quick commerce, focusing on market share [&hellip;]<\/p>\n","protected":false},"author":1767,"featured_media":162998,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[5],"tags":[],"class_list":["post-166597","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":168066,"url":"https:\/\/alphastreet.com\/india\/havells-q4-call-highlights-wires-thrive-fans-stumble-lloyd-delivers\/","url_meta":{"origin":166597,"position":0},"title":"HAVELLS Q4 Call Highlights: Wires Thrive, Fans Stumble, Lloyd Delivers!","author":"Praveen","date":"April 23, 2025","format":false,"excerpt":"Havells India Ltd, a major Fast Moving Electrical Goods (FMEG) company and power distribution equipment manufacturer, in its Q4 earnings call highlighted robust 20% growth in cables and wires, driven equally by value and volume, despite new competitors, with a focus on brand building to counter market dynamics. A delayed\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2024\/07\/CC_Image_8.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":154779,"url":"https:\/\/alphastreet.com\/india\/havells-india-business-update-companies-market-share\/","url_meta":{"origin":166597,"position":1},"title":"Havells India: Business Update &#038; Companies&#8217; Market Share","author":"Hardik Bhandare","date":"October 6, 2023","format":false,"excerpt":"\u201cOverall, I would say consumer demand has been muted, partly due to unseasonal weather, which impacted the B2C business. Demand lately seems to be improving. B2B and Lloyd have grown well. Deflationary trend in LED business has impacted the consumer lighting revenues. However, there is healthy growth in professional lighting.\u2026","rel":"","context":"In &quot;Research Summary&quot;","block_context":{"text":"Research Summary","link":"https:\/\/alphastreet.com\/india\/category\/research-summary\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/b4654e61-a1d5-4b7f-8d9b-2f1140b01114-2.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/b4654e61-a1d5-4b7f-8d9b-2f1140b01114-2.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/b4654e61-a1d5-4b7f-8d9b-2f1140b01114-2.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/b4654e61-a1d5-4b7f-8d9b-2f1140b01114-2.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/b4654e61-a1d5-4b7f-8d9b-2f1140b01114-2.png?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/b4654e61-a1d5-4b7f-8d9b-2f1140b01114-2.png?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":171657,"url":"https:\/\/alphastreet.com\/india\/havells-india-q2-fy26-profit-rises-19\/","url_meta":{"origin":166597,"position":2},"title":"Havells India Q2 FY26: Profit Rises 19%","author":"Divyansh_Kasana","date":"October 20, 2025","format":false,"excerpt":"Havells India Limited is a leading Fast Moving Electrical Goods (FMEG) company and a major manufacturer of power distribution equipment with a strong global presence. It commands market leadership across diverse product categories including Industrial and Domestic Circuit Protection Devices, Cables and Wires, Motors, Fans, Modular Switches, Home Appliances, Air\u2026","rel":"","context":"In &quot;AlphaGraphs&quot;","block_context":{"text":"AlphaGraphs","link":"https:\/\/alphastreet.com\/india\/category\/infographics\/"},"img":{"alt_text":"HAVELLS","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/10\/HAVELLS.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/10\/HAVELLS.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/10\/HAVELLS.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/10\/HAVELLS.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/10\/HAVELLS.png?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/10\/HAVELLS.png?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":138876,"url":"https:\/\/alphastreet.com\/india\/havells-india-limited-q3-fy23-earnings-conference-call-insights\/","url_meta":{"origin":166597,"position":3},"title":"Havells India Limited Q3 FY23 Earnings Conference Call Insights","author":"Praveen","date":"January 20, 2023","format":false,"excerpt":"Key highlights from Havells India Limited (HAVELLS) Q3 FY23 Earnings Concall Management Update: [00:01:36] HAVELLS said, its recent channel expansion initiatives continue to deliver healthy growth. And added that growth momentum was maintained in Lloyd; however, margin recovery was slow. Q&A Highlights: [00:02:58] Renu Baid of IIFL Securities asked about\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":134959,"url":"https:\/\/alphastreet.com\/india\/havells-reported-its-q2fy23-earnings-revenue-up-by-14\/","url_meta":{"origin":166597,"position":4},"title":"Havells reported its Q2FY23 earnings &#8211; Revenue up by 14%","author":"Chirag Gupta","date":"October 20, 2022","format":false,"excerpt":"On Wednesday, the consumer electrical goods maker - Havells reported its earnings for the quarter ended September 30. The company reported a 38.15 per cent decline in its consolidated net profit to INR 187.01 crore as commodity inflation hit its margins. Meanwhile, Revenue from operations rose by 13.63 per cent\u2026","rel":"","context":"In &quot;AlphaGraphs&quot;","block_context":{"text":"AlphaGraphs","link":"https:\/\/alphastreet.com\/india\/category\/infographics\/"},"img":{"alt_text":"trending stocks high volatility","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/02\/Trending-stocks.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/02\/Trending-stocks.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/02\/Trending-stocks.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":171263,"url":"https:\/\/alphastreet.com\/india\/havells-india-fy25-double-digit-growth-lloyd-turns-profitable\/","url_meta":{"origin":166597,"position":5},"title":"Havells India FY25: Double-digit growth, Lloyd turns profitable","author":"Divyansh_Kasana","date":"September 16, 2025","format":false,"excerpt":"Company Overview: Havells India, a leading player in the consumer electrical goods space and continues its leadership trajectory in the white goods and consumer electrical sector, driven by sustained investment in capacity, technology, and distribution. The FY25 annual report highlights aggressive allocation toward R&D, manufacturing expansion, and brand-building initiatives, all\u2026","rel":"","context":"In &quot;Research Summary&quot;","block_context":{"text":"Research Summary","link":"https:\/\/alphastreet.com\/india\/category\/research-summary\/"},"img":{"alt_text":"SHARDAMOTR Q1 FY26 Earnings Results","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/04\/iStock-1443507250.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/04\/iStock-1443507250.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/04\/iStock-1443507250.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/04\/iStock-1443507250.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]}],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/166597","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/users\/1767"}],"replies":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/comments?post=166597"}],"version-history":[{"count":0,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/166597\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media\/162998"}],"wp:attachment":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media?parent=166597"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/categories?post=166597"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/tags?post=166597"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}