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Havells India Limited — Q4 FY24
Havells India reported a decent Q4 FY24 with revenue growth driven by infrastructure demand and early summer.
bullish
medium
✓ Verified against BSE filing
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Havells India reported a decent Q4 FY24 with revenue growth driven by infrastructure demand and early summer. Fans saw robust growth post-BEE transition, while Lloyd's EBIT turned positive due to cost efficiencies and manufacturing scale, though AC sales grew only 6% amid industry growth of ~20%. Management remains bullish on core business growth, citing real estate pickup and summer momentum, but flagged raw material inflation as a near-term headwind. Key highlights: 18% volume growth in cables and wires, 65% capacity utilization at Lloyd's AC plants, INR 800 crore capex planned for FY25, and 15% volume growth in cables for FY24. Risks include commodity price pressure and competitive intensity in ACs.
हैवेल्स इंडिया ने वित्त वर्ष 2024 की चौथी तिमाही में अच्छा प्रदर्शन किया। कंपनी की आय बढ़ी, जिसका कारण बुनियादी ढांचे की मांग और गर्मी का जल्दी आना था। पंखों की बिक्री में बीईई नियमों के बाद जोरदार बढ़ोतरी हुई। लॉयड का मुनाफा लागत बचत और उत्पादन बढ़ने से सकारात्मक हुआ, हालांकि एसी की बिक्री सिर्फ 6% बढ़ी जबकि उद्योग में 20% बढ़ोतरी हुई। कंपनी को रियल एस्टेट और गर्मी से अपने मुख्य कारोबार में तेजी की उम्मीद है, लेकिन कच्चे माल की बढ़ती कीमतें चिंता का विषय हैं। मुख्य बातें: तारों और केबलों की बिक्री में 18% वृद्धि, लॉयड के एसी प्लांट 65% क्षमता पर चल रहे हैं, अगले साल 800 करोड़ रुपये का निवेश योजना है। जोखिम: कच्चे माल की कीमतें और एसी में कड़ी प्रतिस्पर्धा।
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Raw material inflation and pricing pressure
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Cables & Wires Volume Growth (Q4)
18%
+18% YoY
Volume growth in cables and wires for Q4 FY24, driven by infrastructure and real estate demand.
Lloyd's AC Capacity Utilization
65%
N/A
Average capacity utilization for Lloyd's AC plants (2M units capacity) for FY24, reflecting seasonality.
Cables & Wires Volume Growth (FY24)
15%
+15% YoY
Full-year volume growth in cables and wires for FY24, indicating sustained demand.
Capex Guidance FY25
INR 800 crore
N/A
Planned capital expenditure for FY25, primarily for Havells core business, including cable capacity expansion.
What Changed vs Last Quarter
NEW
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.
NEW
Cable capacity commissioning in June 2024
New cable capacity will be commissioned in June 2024, with benefits expected in the second half of FY25.
NEW
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.
DROPPED
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.
DROPPED
Lloyd margin improvement through cost efficiencies
Lloyd's profitability will improve through multiple cost levers including procurement efficiency, plant optimization, and premiumization.
DROPPED
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.
NEW RISK
Raw material inflation and pricing pressure
Rising commodity prices (copper, etc.) may compress margins if price hikes cannot be fully passed on, especially in competitive segments like fans and ACs.
NEW RISK
Lloyd's AC market share loss
Lloyd's Q4 AC sales grew only 6% vs industry ~20%, raising concerns about market share erosion. Management attributed this to inventory normalization and a focus on sell-out, but the trend bears watching.
NEW RISK
Competition in switches from unbranded players
Analyst noted that brands like GM, Goldmedal, Anchor are gaining traction, and Havells may have lost share in switches. Management claimed recent market share recovery, but competitive pressure remains.
RISK GONE
Price deflation in lighting continues to impact value growth
Despite strong volume growth, price erosion in lighting has led to value degrowth, which may persist if competition intensifies.
RISK GONE
Lloyd's path to profitability uncertain
Analysts repeatedly questioned Lloyd's margin trajectory; management deflected with long-term commentary, indicating near-term visibility is low.
RISK GONE
Potential price war in RAC due to capacity additions
New capacities from multiple players and PLI incentives could lead to pricing pressure, though management downplayed this risk.
🤫 Topics management stopped discussing
Mentioned in Q2 FY24, Q3 FY24
Lloyd's profitability will improve through multiple cost levers including procurement efficiency, plant optimization, and premiumization.
Mentioned in Q1 FY24, Q2 FY24
Increased competition and discounting in the ECD segment, especially fans, could pressure margins and market share.
Fast read
Guidance and risk preview
Management guided for capital expenditure of approximately INR 800 crore in FY25, primarily for Havells core business, including cable capacity exp...
Rising commodity prices (copper, etc.) may compress margins if price hikes cannot be fully passed on, especially in competitive segments like fans...
View Risks →