Havells India Limited , a leading electrical equipment manufacturer, has reported a mixed set of financial results for the second quarter. The company saw an increase in both profit and revenue, as per the unaudited consolidated financial results.

Key Financial Highlights

Revenue Performance

Havells India reported a consolidated net revenue of Rs. 4,767.00 crores for Q2, marking a 5.2% increase from the same quarter last year. This growth was observed across most of its business segments, with the cables segment showing particularly strong performance.

Profitability

The company's net profit for the quarter stood at Rs. 317.00 crores, up by 16.5% compared to the previous year. EBITDA also showed significant improvement, rising by 16.3% to Rs. 442.00 crores. The EBITDA margin improved to 9.3% from 8.4% in the previous year.

Segment Performance

Havells India's performance across various segments for Q2 was mixed:

• Cables: Showed strong performance with 12.4% revenue growth and improved margins.
• Lloyd Consumer: Faced challenges with an 18.5% revenue decline due to weak summer demand and higher channel inventory.
• Electrical Consumer Durables: Declined by 1.8%, primarily due to weakness in fans and air coolers.

Other Notable Points

1. The company's other income included Rs. 45.27 crores from asset sales following the relocation of the switchgear business.

2. For the half-year period, net revenue declined 1.2% to Rs. 10,204.00 crores with net profit down 2% to Rs. 670.00 crores.

3. Havells India maintained cash and cash equivalents of Rs. 1,449.00 crores.

4. The company invested Rs. 600.00 crores in acquiring a stake in Goldi Solar during the quarter, a strategic move to accelerate growth in the renewable energy sector.

Performance Overview

The results suggest that Havells India has managed to improve its profitability despite challenges in certain segments, particularly in the Lloyd Consumer division. The company's strong performance in the cables segment and improved EBITDA margins indicate resilience in its core business.

The strategic investment in Goldi Solar and the company's ability to maintain a strong cash position demonstrate a focus on long-term growth and financial stability.

Havells International, a wholly-owned subsidiary of Havells India Limited, has announced plans to acquire the remaining 20% stake in Havells HVAC LLC from its joint venture partner, Salesmark Ventures LLC. This strategic move will result in Havells HVAC LLC becoming a wholly-owned subsidiary of Havells International, strengthening the company's presence in the US HVAC market.

Background of the Joint Venture

Havells International entered into a joint venture agreement with Salesmark Ventures LLC, a company organized under the laws of the State of Florida, USA. The joint venture, Havells HVAC LLC, was established with an 80:20 ownership ratio between Havells International and Salesmark Ventures, respectively.

Purpose of the Joint Venture

The primary objective of Havells HVAC LLC was to market and sell various portable air conditioning units and related accessories belonging to brands owned by Havells India Limited within the United States of America.

Latest Development

The Executive Committee of the Board of Directors of Havells India Limited took note of Havells International's decision to acquire Salesmark Ventures LLC's 20% stake in the joint venture. This acquisition will transform Havells HVAC LLC into a wholly-owned subsidiary of Havells International.

Implications of the Acquisition

This strategic move by Havells International indicates:

1. A strong commitment to the US HVAC market
2. Potential for streamlined operations and decision-making processes
3. Greater control over the marketing and sales strategies for Havells' HVAC products in the USA

Key Details of the Transaction

This acquisition represents a significant step for Havells in consolidating its position in the US HVAC market and potentially expanding its product offerings and market reach in the region.

Investors and industry observers will likely be watching closely to see how this full ownership impacts Havells' performance and market share in the competitive US HVAC sector.