Electrical equipment giant Havells India has delivered a mixed performance in the second quarter of fiscal year 2025, showcasing robust profitability but moderated revenue growth that has caught market attention.
Financial Performance Highlights
The company reported a remarkable 34% year-on-year increase in consolidated net profit, reaching ₹484.5 crore for the July-September period. This impressive bottom-line growth comes despite a more modest 6.6% increase in revenue from operations, which settled at ₹4,927.4 crore.
Segment-Wise Breakdown: Winners and Challenges
Lloyd Consumer Business emerged as the star performer, registering a healthy 13% growth that significantly outpaced other segments. The air conditioner and consumer durables division continues to be a key growth driver for the company.
However, not all segments shared the same success story. The cables business experienced a notable 8% decline, reflecting the challenging market conditions and competitive pressures in this segment.
Margin Expansion: The Silver Lining
One of the most encouraging aspects of Havells' Q2 performance was the significant improvement in operational efficiency. The company's operating margin expanded by an impressive 180 basis points, climbing to 12.5% compared to 10.7% in the same quarter last year.
This margin improvement played a crucial role in driving the substantial profit growth despite the relatively modest revenue increase, demonstrating effective cost management and operational optimization.
Market Reaction and Analyst Outlook
Following the earnings announcement, Havells shares showed resilience in morning trading, though market sentiment remains cautiously optimistic. Analysts are closely watching how the company navigates the balance between volume growth and margin preservation in the coming quarters.
The company's ability to maintain profitability while addressing the challenges in specific segments like cables will be critical for sustaining investor confidence and long-term growth momentum.
