Q1 2027 Havells India Ltd Earnings Call Transcript
Key Points
- Havells India Ltd (BOM:517354) reported strong revenue growth in Q1 FY27, driven by resilient demand despite inflationary pressures and geopolitical uncertainties.
- The company successfully implemented calibrated price hikes across various categories to offset raw material inflation, which were well absorbed by consumer categories.
- The renewables segment showed robust growth, benefiting from sector tailwinds, and is now reported as a separate segment, indicating its strategic importance.
- Havells India Ltd significantly increased its brand-building efforts, with advertising spends more than doubling year-on-year, which is expected to normalize over the year.
- The company remains optimistic about improving demand environment and maintaining a healthy outlook on margins for the rest of the year.
- The switchgear segment faced challenges due to export disruptions and raw material volatility, resulting in a 260 basis point margin erosion.
- The lighting segment experienced stabilized pricing, but future price hikes may be necessary due to electronics cost increases.
- The cables and wires segment reported flat volume growth, attributed to raw material price fluctuations affecting dealer sales.
- The company's profitability was impacted by front-loaded advertising investments and raw material pressures, affecting Q1 margins.
- Lloyd's air conditioner segment reported single-digit volume growth, with value growth driven by price hikes, indicating competitive pressures and market share concerns.
Ladies and gentlemen, good day, and welcome to Havells India Q1 FY27 Earnings Call. (Operator Instructions) Please note that this call has been recorded. I now hand over the call to Mr. Aniruddha Joshi from ICICI Securities. Thank you, and you to Mr. Aniruddha Joshi.
Yes. Thanks, Sumit. On behalf of ICICI Securities, we welcome you all to Q1 FY27 Results Conference Call of Havells India Limited. We have with us today senior management represented by Mr. Anil Rai Gupta, Chairman and Managing Director; Mr. Rajesh Kumar Gupta, Whole-Time Director and Group CFO; Mr. Amit Kumar Gupta, Whole-Time Director; and Mr. Rajiv Goel, Executive Director. Now I hand over the call to the management for initial comments on the quarterly performance. Then we will have the question and answer session. Thanks, and over to you, Anil Rai Gupta.
Good evening, everybody. Thank you for
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