Havells’ CMD Anil Rai Gupta shared the business outlook in an interview with the Economic Times.
Momentum in second half
Gupta pointed out that upside movement in the second half despite a muted first half drove up company’s revenues by 9% during the period. This makes him confident on FY16 as far as month-on-month growth figures are concerned.
The company has seen some margin expansion in a number of product divisions, which is a positive sign and hints at an upswing in the Indian economy. At the same time, Gupta is convinced that they will be able to sustain margins and operational performance over the next few quarters. However, he feels that the cables and wires business might encounter some moderation.
Meanwhile, the company has exited 80% of its investment from Sylvania, yielding Rs.900 crore informed Gupta. This divestment resulted in profits of Rs.202 crore in the quarter, he added.
LED grew 100%
Besides this, Gupta told ET that their company maintains a leadership position in many product categories. The company’s impressive margins in all the product segments are a good reflection of its brand and product positioning. He said that the company delivers high-value products to the consumers; factors such as discounts are not really affecting any company that has invested in brand and product technology.
Gupta agreed that the LED business has gone through a lot of transformation with more than 50% of its lighting business coming from this product. There has been 100% growth in LEDs this year and the same pace is expected to continue. Additionally, the consumer durables business has seen 11% growth this year despite the economic slowdown.
In the end, Gupta said that they are eyeing equal growth opportunities in all of its four business segments, i.e., switchgear, cables, lighting, and consumer durables.
source: India Infoline
