Re: {LONGTERMINVESTORS} Havells....Thread
RAJESH DESAI
Havells India - 4Q12 - Concall Invite
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CA. Rajesh Desai
RAJESH DESAI
Dear Sir/Madam,
Havells India, announced its Q4FY12 & FY12 results on 30th May, 2012.
Quarterly performance-Q4FY12:
The company arrived at Net sales of INR1046.68 crores, which was up by 24.48% on yearly basis and 16.79% sequentially. The EBITDA for the quarter was INR130.16 crores, which was up by 41.43% on yearly basis and 25.08% sequentially. The EBITDA Margin was 12.44%, which was again up by 149bps Y-o-Y, and 83bps sequentially. Havells posted a net profit of INR91.52 crores, which was up by 32.56% Y-o-Y, but up by 46.69% sequentially.
Annual Performanc-FY12:
The company arrived at consolidated Net sales of INR6518.20 crores, showing a yearly robust growth of 16.13%. The EBITDA for the year was INR602.18 crores, which was up by 20.55%. However, the margin was also up by 34bps. Havells India arrived at net profit of INR369.92 crores, depicting a huge upside of 21.86%. The net profit margin increased by mere 27bps.
The Board has recommended of Dividend at INR6.50 per equity share of INR5/- each i.e. 130% for the financial year 2011-12.
Key Result Highlights:
1. The company has given a revenue guidance of 15-20% for FY13.
2. The debt situation being quite comfortable, there is an interest cost of INR19 crores in Q4FY12, because of the INR9 crores of forex loss, which is considered to be a normal MTM loss.
3. The management expects interest costs of around INR8 crores per Quarter.
4. Sylvania has turned around quite well for the company, despite Europe’s de-growth. It has achieved flat growth of Euro 450mln, however, EBITDA has grown from EURO26mln to EURO37mln. The PBT FOR Sylvania alone is of EURO17mln and PAT of EURO10mln.
5. There has been a 46% growth in operating profits in Sylvania.
6. Branding, strong distribution penetration and branch expansion will help the company to grow in future.
7. In case of Sylvania, company is gaining its market share in UK, Germany & Spain, etc. It has refinanced the entire loan recently to reduce interest cost.
8. Dollar loan in balance sheet-A risk factor.
9. Margin to remain stable given the dollar appreciation.
|
Havells India |
Standalone Results |
Consolidated Results | |||||||||
|
Particulars |
Q4FY12A |
Q4FY11A |
Q3FY12A |
YoY(%) |
QoQ(%) |
FY12 |
FY11 |
YoY Change (%) |
FY12 |
FY11 |
YoY Change (%) |
|
Net Sales |
1046.68 |
840.82 |
896.17 |
24.48% |
16.79% |
3615.61 |
2881.65 |
25.47% |
6518.2 |
5612.63 |
16.13% |
|
EBITDA |
130.16 |
92.03 |
104.06 |
41.43% |
25.08% |
417.42 |
328.46 |
27.08% |
602.18 |
499.54 |
20.55% |
|
EBITDA Margin (%) |
12.44% |
10.95% |
11.61% |
149bps |
83bps |
11.54% |
11.40% |
14bps |
9.24% |
8.90% |
34bps |
|
PAT |
91.52 |
69.04 |
62.39 |
32.56% |
46.69% |
305.43 |
242.05 |
26.18% |
369.92 |
303.57 |
21.86% |
|
PAT Margin (%) |
8.74% |
8.21% |
6.96% |
53bps |
178bps |
8.45% |
8.40% |
5bps |
5.68% |
5.41% |
27bps |
|
Basic EPS |
7.33 |
5.53 |
6.32 |
32.55% |
15.98% |
24.48 |
19.4 |
26.19% |
29.65 |
24.33 |
21.87% |
|
Source: Company Data, Microsec Research. All data in INR crores unless specified. EPS represents diluted EPS. | |||||||||||
Regards,
Team Microsec Research
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CA. Rajesh Desai
RAJESH DESAI
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CA. Rajesh Desai
RAJESH DESAI
Barclays has maintained its 'Overweight' rating on Havells as the launch of new products will help fuel growth as demand for fans remain flat.
The bank said, quoting dealers, that Havells has introduced new product variants in the market such as a new range of tea and coffee electric kettles, a new variant of electric irons, mixer grinders with different aesthetics, a new range of horizontal geysers for the Mumbai region, priced similarly to vertical geysers, geysers with digital controls, and smaller-size geysers with improved energy efficiency.
"The overall market demand for fans appears to be flattish, supported by growth in retail demand. Distributors highlighted that Havaells is collaborating with discoms (Tata Power and Reliance Infra) to promote the sale of energy-efficient fans," said Barclays analysts led by Venugopal Garre in a note to clients, while maintaining its price target at Rs 614.--Warm Regards,Uttam
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CA. Rajesh Desai
RAJESH DESAI
Havells India has inaugurated its second ‘Havells Galaxy’ showroom in the Chennai city, which is also the twenty first showroom in the state of Tamil Nadu. The company has 169 such showroom across the country, including major towns and cities and intends to take this number beyond 200 by end of this financial year.
Havells Galaxy is spread across 1,000 square feet and offers end-to-end solution in electrical goods. It offers industrial switchgears, cables, fans, CFLs, lighting fixtures and water heaters. The concept of Havells Galaxy, a one-stop shop, is dynamic and is differently positioned from retail format existing in the country.
Havells India is engaged in selling products in Kerala for several years and the business has shown an upward trend in terms of turnover in a short span of time. It has 10 manufacturing facilities in India in various states, including Himachal Pradesh, Uttar Pradesh and Rajasthan--
CA. Rajesh Desai