Havells India’s Q2 profit rises 33% on strong air-conditioner, cable sales

BENGALURU (Reuters) – Home appliances maker Havells India reported a 33% rise in second-quarter profit on Thursday, as cables remained in demand due to sustained infrastructure spending and as dry weather boosted air-conditioner sales.

The company’s profit for the September quarter rose to 2.49 billion rupees ($29.92 million) from 1.87 billion rupees a year earlier, but missed analysts’ average estimate of 2.87 billion rupees, as per LSEG data.

Revenue for the quarter rose 6% to 38.91 billion rupees.

Analysts had expected strong growth in the cables and wires segment due to healthy demand from the housing and infrastructure sectors.

The cables segment, the company’s largest in terms of revenue, doubled its pre-tax profit to 1.71 billion rupees.

The Lloyd consumer segment benefited from a pickup in sale of air-conditioners due to unusually dry weather during the quarter.

The Lloyd segment posted a narrower loss of 733.1 million rupees compared with a loss of 832.9 million rupees a year earlier.

Havells India flagged softness in consumer demand but expects an uptick in the festival season this quarter.

Shares of the company closed 1.7% higher at 1,362.7 rupees ahead of quarterly results.

($1 = 83.2233 Indian rupees)

(Reporting by Anuran Sadhu in Bengaluru; Editing by Mrigank Dhaniwala)