Havells India falls 6% post September-quarter earnings

Havells India dipped 6% to Rs 512 on the BSE in intra-day trade in otherwise firm market after the company reported single digit growth in standalone net revenue (excluding Lloyd) at Rs 1,508 crore in September quarter (Q2FY18).  It had net revenue of Rs 1,452 crore in Q2FY17.

Net profit of the company during the quarter under review grew 9% to Rs 159 crore against Rs 146 crore in the corresponding quarter of previous fiscal.

“The transition to Goods and Service Tax (GST) regime which led to the decline in primary off take starting May 2017, continued its impact on the business during the quarter,” Havells India said in a press release.

We believe that GST would render long term benefits though currently it is disruptive in impact. We are experiencing slowdown in demand due to perceived higher pricing of electrical products and slower primary re-stocking post GST de-stocking in June, it added.