Havells India Faces Market Dip Amid Mixed Sentiments on Q4 Performance

Havells India Ltd. experienced a 5 percent drop in its stock price following the announcement of its fourth-quarter results for FY25. Despite reporting a robust 16 percent year-on-year increase in net profit to Rs 518 crore and a 20 percent rise in revenue to Rs 6,543 crore, cautious demand commentary from the management has raised concerns among investors.  

 

The company highlighted subdued consumer sentiment, particularly in the cooling products segment, due to the delayed onset of summer in South India. While primary sales of room air conditioners remained strong in Q4, secondary sales slowed in March and April, potentially impacting Q1 performance.  

 

On a positive note, Havells reported strong growth in its cables and wires segment, supported by the ramp-up of its Tumkur plant. The Lloyd brand also performed well, contributing significantly to revenue growth. However, muted performance in categories such as switchgear and lighting tempered overall optimism.  

 

Brokerages remain divided on the stock's outlook. While some have revised earnings estimates downward due to near-term challenges, others maintain a positive view, citing Havells' strong brand, distribution network, and strategic investments in growth areas.  

 

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Source: Moneycontrol, Business Standard, CNBC-TV18.