CapEx of INR 600 crore for FY24
Management confirmed the CapEx guidance of INR 600 crore for FY24, with a skew toward Havells segments due to the new cable plant in Karnataka.
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New cable plant commissioning by end of FY24
The greenfield cable and wire plant in Karnataka is expected to be commissioned around the end of this financial year.
Lloyd margins to improve in H2
Management expects Lloyd's margins to improve in the second half of the year as raw material costs stabilize and sales volumes increase.
Capex of INR 800-900 crore for FY2025
Management maintained capex guidance of INR 800-900 crore for FY2025, with 30-40% allocated to cable capacity expansion.
Lloyd's profitability to improve over time
Management expects continued improvement in Lloyd's profitability driven by premiumization, cost efficiencies, and operating leverage, but did not provide a specific margin target.
Export approvals to be completed in 9-12 months
Management expects to have a full bouquet of approvals for cables and HVAC exports to the US within 9-12 months.
Cable capacity doubling by FY27
Havells is doubling underground cable capacity from FY24 to FY27 with additional CapEx of INR 340 crore announced this quarter.
Solar revenue target of INR 1,000-1,500 crore
Management expects solar business revenue to cross INR 1,000-1,500 crore in the next couple of years, up from ~INR 500 crore in FY25.
Switchgear contribution margin target 38-40%
Management aims to maintain switchgear contribution margins in the 38-40% range, with sequential improvement expected.
Cables & wires contribution margin aspiration 14-15%
Management expects cables and wires contribution margins to remain in the 14-15% range, with potential upside from operating leverage.
CapEx of INR 600 crore for FY24
Management guided capital expenditure of INR 600 crore for the current fiscal year, primarily for cable and Lloyd capacity expansion.
Lloyd margin improvement expected in H2
Management expects Lloyd's margins to improve in the second half as new capacity ramps up and seasonality benefits kick in.
Cable capacity expansion of 25%
Cable manufacturing capacity will be expanded by 25% to address current constraints and support growth.
CapEx of INR 1,000 crore for FY25
Management expects total CapEx of approximately INR 1,000 crore for FY25, with INR 350 crore already incurred in H1.
Cables & Wires margins to normalize by Q4 FY25
Management expects cables and wires margins to return to normalized levels by Q4 FY25, assuming no further commodity volatility.
Lighting pricing bottoming out by Q4 FY25
Management expects lighting pricing to bottom out by Q4 FY25, with real growth returning in FY26.
Switchgear margins to remain 22-25%
Management expects switchgear EBIT margins to remain in the 22-25% range over the medium term.
Channel inventory normalization by Q3 end
Management expects elevated channel inventory for summer products (ACs, fans, coolers) to normalize by the end of Q3 FY26.
Lloyd contribution margin improvement from Q4
Lloyd's contribution margins, impacted by consumer schemes, are expected to start improving in Q3 with real effects in Q4.
CapEx of INR 1,450 crore for FY26
Capital expenditure for FY26 is guided at INR 1,450 crore, primarily for capacity expansion in cables and other segments.
Havells standalone EBITDA margin expansion of 150-200bps
Management reiterated confidence in expanding Havells standalone EBITDA margins by 150-200 basis points over time through productivity and premiumization.
Expect normalcy in B2C demand and strong summer season
Management expects B2C demand to improve due to low base and abating inflation, with a strong summer season for fans and ACs.
Lloyd margin improvement through cost efficiencies
Lloyd's profitability will improve through multiple cost levers including procurement efficiency, plant optimization, and premiumization.
Capex for underground cables capacity expansion of 25%
Havells is investing INR 300 crore to increase underground cable capacity by 25%, with a new plant in the south.
Ex-Lloyd segment margins of 12-13% in FY26
Management guided for ex-Lloyd EBITDA margins of 12-13% in FY26, with normalization expected in the coming year.
Switchgear margins to normalize to 23-24%
Switchgear EBIT margins expected to recover to 23-24% from current 18% as plant relocation and mix issues resolve.
INR 480 crore CapEx for refrigerator plant
New refrigerator manufacturing facility in Ghiloth, Rajasthan with INR 480 crore investment to become a full-stack consumer durable player.
CapEx of INR 1,000 crore for current and next year
Total CapEx of INR 1,000 crore planned for FY25 and FY26, with 3/4th allocated to cables and refrigerator plant.
CapEx of ~INR 1,000 crore in FY27
Management guided for CapEx in the range of INR 1,000 crore next year, primarily for cables and wires and a new R&D center.
RAC price hike of 5-10% in Q4
Management indicated a 5-10% price increase for room ACs in the current quarter to offset cost pressures.
Channel inventory normalization by March 2026
Management expects channel inventory for cooling products to normalize by March 2026 as the summer season begins.
Capex of INR 800 crore for FY25
Management guided for capital expenditure of approximately INR 800 crore in FY25, primarily for Havells core business, including cable capacity expansion.
Cable capacity commissioning in June 2024
New cable capacity will be commissioned in June 2024, with benefits expected in the second half of FY25.
Potential price increases in Q1 FY25
Management indicated that price increases may be taken in Q1 FY25 across product categories due to rising raw material costs, but will balance growth and market share.
Havells ex-Lloyd EBITDA margin target of 13-14.5%
Management expects Havells (excluding Lloyd) to return to normalized EBITDA margins of 13% to 14.5% driven by operating leverage.
INR 2,000 crore CapEx over next two years
Total capital expenditure of approximately INR 2,000 crore planned over the next two years, including a new R&D center.
Lloyd to continue investing for growth
Lloyd will maintain investments in brand, distribution, and product development, with no specific margin guidance due to ongoing investment phase.
Capex of INR 800 crore in FY27 for cables and wires
Major capex of INR 800 crore planned for cables and wires capacity expansion in FY27, with new capacities coming online by end of FY27 or early FY28.
New R&D center investment over next 2-2.5 years
Significant investment in a new R&D center, with spending spread over the next two to two and a half years.
No major new capex in Lloyd segment
Management indicated no major new capital expenditure planned for the Lloyd segment in the near term.