(Reuters) -Home appliances and electrical goods maker Havells India reported first-quarter profit below analysts’ estimates on Monday, due to subdued demand and heightened competition.
Consolidated net profit came in at 3.48 billion rupees ($40.33 million) for the quarter ended June 30, down from 4.08 billion a year ago, and missing the LSEG consensus estimate of 4.06 billion rupees.
Revenue from operations declined nearly 6% to 54.55 billion rupees, while total expenses dropped 5% to 50.55 billion rupees as input costs fell.
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KEY CONTEXT
India’s wires and cables market is bracing for disruption next year, with UltraTech Cement and Adani-backed Praneetha Ecocables set to enter the fray.
To fend off the rising competition, Havells has stepped up investments in distribution and brand-building efforts, analysts have said.
Meanwhile, a shorter summer dented demand for air conditioners sold under Havells’ Lloyd brand, the company said.
PEER COMPARISON
Valuation (next 12 Estimates (next 12 Analysts’ sentiment
months) months)
RIC PE EV/EBI Price/ Revenue Profit Mean No. of Stock to Div
TDA Sales growth (%) growth (%) rating* analyst price yield
s target** (%)
Havells India 50.36 33.64 3.78 13.53 20.01 Buy 25 0.86 0.66
Polycab India 41.54 28.38 3.16 17.49 17.99 Buy 28 1.04 0.50
R R Kabel 35.98 22.37 16.50 29.99 Buy 9 0.92 0.50
V Guard Industries 39.19 26.46 13.34 22.78 Buy 17 0.91 0.38
* The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** The ratio of the stock’s last close to analysts’ mean price target; a ratio above 1 means the stock is trading above the PT
APRIL TO JUNE STOCK PERFORMANCE
— All data from LSEG
— $1 = 86.2830 Indian rupees
(Reporting by Ananta Agarwal in Bengaluru; Editing by Vijay Kishore)
