Home appliances maker Havells India misses Q1 profit view on higher expenses

Blue Star

18/07/2024 09:51

BENGALURU, July 18 (Reuters) - Home appliances maker Havells India  HVEL.NS  reported a smaller-than-expected
first-quarter profit on Thursday, as higher expenses offset improved demand for its air conditioners and fans.
    Profit rose 43.1% from a year earlier to 4.11 billion rupees ($49.15 million) for the three months ended June 30, missing
analysts' expectations of 4.31 billion rupees, as per LSEG data.  
    The water heater maker's revenue from operations rose 20.2% to 57.98 billion rupees, while total expenses rose 18.1% to
53.22 billion rupees.
    
    For further earnings highlights, click  urn:newsml:reuters.com:*:nFWN3JA0SB
    
KEY CONTEXT
    India's summer lasts from March to May, yet many Indian cities saw warmer nights during June. Hot weather increases
consumer spending on electrical appliances. 
    Analysts said that the country's consumer durables sector experienced healthy demand during the quarter due to severe
summer and despite price increases. 
    Prices of raw material such as copper and aluminium rose, they added. 
    Havells India, biggest among its peers by market capitalisation, is the first to report first-quarter results.
    
PEER COMPARISON 
    
                               Valuation (next 12      Estimates (next 12      Analysts' sentiment                     
                               months)                 months)                                                         
                      RIC      PE     EV/EBI  Price/S  Revenue      Profit    Mean      # of analysts  Stock to price  Div
                                      TDA     ales     growth %     growth %  rating*                  target**        yield
                                                                                                                       (%)
 Havells India Ltd    HVEL.NS  66.68  45.63   5.29     15.25        27.86     Hold      16             1.06            0.48
 Crompton Greaves     CROP.NS  44.45  29.34   2.77     12.44        31.54     Buy       31             1.05            0.70
 Consumer                                                                                                              
 Electricals Ltd                                                                                                       
 Voltas Ltd           VOLT.NS  58.84  44.60   2.66     16.22        109.53    Hold      34             1.13            0.36
 Blue Star Ltd        BLUS.NS  57.47  37.96   NULL     20.83        35.77     Buy       19             1.21            0.40
 
* The mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT
     
           
APRIL-JUNE STOCK PERFORMANCE
    

    
-- All data from LSEG
    
-- $1 = 83.6170 Indian rupees

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Havells India Q1 stock performance    https://tmsnrt.rs/3Yb2ctc
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 (Reporting by Meenakshi Maidas in Bengaluru; Editing by Mrigank Dhaniwala)
 ((Meenakshi.Maidas@thomsonreuters.com; +91 8921483410;))