The capacity addition is set to be of 14 lakh units and the same is to be added by the second quarter of FY27. The investment will be financed via internal accruals.
The company said the rationale behind the capacity addition is to reap the benefits of backward integration and economies of scale.
On another note, Havells India’s September quarter results missed expectations on the operational front.
Net profit for the cables and wires manufacturing company increased by 7.7% from the same quarter last year to ₹268.2 crore. However, the figure was below what analysts tracking the company had projected. Analysts estimates, as per the CNBC-TV18 poll, stood at ₹328 crore.
reported a 16.4% growth in its September quarter topline to ₹4,539.3 crore, which was marginally higher than the CNBC-TV18 poll of ₹4,332 crore.
Earnings Before Interest, Tax, Depreciation and Amortisation remained flat when compared to the same period last year at ₹374.6 crore. The figure is well below the CNBC-TV18 poll of ₹459 crore.
EBITDA margin for the quarter fell 140 basis points to 8.2% from 9.6% year-on-year and well below expectations of 10.6%
The company highlighted in its investor presentation that high volatility in commodity prices impacted contribution margins, particularly in the cables segment. They also mentioned that the shift in the festive season led to the advancement of Advertising spends into the September quarter.
Havells India shares were trading 2.04% higher at ₹1,652.15 apiece at 11.50 am on Tuesday, November 19. The stock has gained 21.27% this year, so far.
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First Published: Nov 19, 2024 11:54 AM IST
