In This Article:
Release Date: April 22, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Havells India Ltd (BOM:517354) reported healthy revenue and profit growth in Q4 2025, driven by large appliances and cables.
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Lloyd, a subsidiary of Havells, delivered strong revenue growth and marginal improvement, indicating a robust performance.
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The company is focusing on consistent revenue growth and improving profitability, particularly in the Lloyd segment.
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Havells is expanding its international business, targeting developed markets like the US, Europe, and Australia, which are beginning to show positive results.
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The company is investing in solar energy, with a strategic investment in Goldy Solar, aiming to expand its presence in the renewable energy sector.
Negative Points
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Inflation pressures and global uncertainties are affecting consumer sentiments and causing volatility in commodity prices.
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The ramp-up of new cable plant capacities is still underway, which may impact short-term growth.
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There is a decline in contribution margins in the cable segment due to product mix changes and volatility in wire prices.
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The delayed summer has affected the growth of cooling products like fans, impacting the overall performance in certain regions.
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The company faces challenges in the industrial switchgear segment, with slow growth and market share concerns.
Q & A Highlights
Q: There is a decline in contribution margin for cables despite rising copper prices. Why is this happening? A: The decline is due to the ramp-up of new cable capacities and volatility in wire prices, leading to muted growth in the domestic power business. The product mix changes affect contribution margins, but this is not expected to be a normal level. (Respondent: Unidentified_3)
Q: Your presentation mentions moderate ECD growth due to a mild start to the summer season, yet ACs performed well. Is this due to low demand for fans or high inventory levels? A: The delayed summer affected growth in cooling products like fans, which are more structural. However, last year was strong for ACs, leading to stock build-up in the channel. The base effect also contributed to muted growth for Lloyd in Q4. (Respondent: Unidentified_3)
Q: Regarding Lloyd's performance, you mentioned cost savings and scale benefits. Will these lead to increased margins going forward? A: Lloyd is on a long-term growth journey, and while cost savings and scale benefits are expected to improve margins, the focus remains on revenue growth and brand upliftment. Investments in R&D and premium products will continue. (Respondent: Unidentified_3)