Havells India Q1 Results: Net profit sinks 15% YoY to ₹347 crore on weak demand for cooling products

Havells India, one of the country’s leading Fast-Moving Electrical Goods (FMEG) companies, announced its June quarter results today, July 21, reporting a 15% decline in consolidated net profit to ₹347 crore, impacted by weak demand for cooling products. In the same period last year, the company had posted a net profit of ₹406 crore.

On a sequential basis, net profit fell by 33%, compared to ₹517 crore reported in the preceding March quarter. Revenue from operations also fell 6% year-on-year to ₹5,455 crore, compared to ₹5,806 crore in Q1FY25.

Revenue from the Lloyd Consumer segment declined sharply by 34.4% to ₹1,262 crore, which the company attributed to a weak summer season, in contrast to a strong season last year.

Revenue from the ECD segment also fell by 14.1% to ₹906 crore, as unseasonal rains and a shorter summer impacted demand for fans and air coolers. Meanwhile, lighting revenue declined by around 10% YoY, due to LED price deflation.

However, revenue from the Cables segment grew to ₹1,933 crore, supported by capacity expansion and strong industrial and infrastructure demand. The Switchgears segment also recorded a 9% YoY revenue growth, reaching ₹630 crore.

On the operating front, its EBITDA fell by 10% from the year-ago period to ₹520 crore, while margins narrowed by 40 basis points to 9.6% from 10% last year and 11.6% from Q4FY24.

The results highlight that industrial demand remains encouraging, while consumer demand remains tepid. Earlier, the company highlighted challenges in its cooling division, which led to earnings cuts by multiple brokerage firms

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