(Reuters) -Home appliances and electrical goods maker Havells India reported fourth-quarter profit above analysts’ estimates on Tuesday, helped by demand for air conditioners ahead of the summer season.
The company reported a profit of 5.18 billion rupees ($60.8 million) in the three months ended March 31, nearly 16% higher than a year ago. Analysts, on average, were expecting a profit of 4.67 billion rupees, as per data compiled by LSEG.
Its revenue from operations rose 20.2% to 65.44 billion rupees, beating analysts’ estimates of 62.32 billion rupees.
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KEY CONTEXT
Consumers tend to spend more on buying or upgrading air conditioners ahead of India’s summer months, which can start as early as April and extend late into July, with temperatures rising above 40 degrees Celsius in some parts of the country.
Sales of the company’s appliances brand Lloyd, which includes air conditioners and washing machines, rose nearly 40% in the quarter. Lloyd earns the majority of its revenue from air conditioners.
Additionally, stabilization in price of key raw material copper and capacity expansion helped the company’s biggest segment wires and cables, where revenue grew 21.2% year-on-year.
PEER COMPARISON
Valuation (next 12 Estimates (next 12 Analysts’ sentiment
months) months)
RIC PE EV/EBI Price/ Revenue Profit Mean No. of Stock to Div yield
TDA Sales growth growth rating* analyst price (%)
s target**
Havells India 56.73 37.99 4.16 14.79 21.79 Buy 24 0.92 0.61
Crompton Greaves 31.08 20.83 2.26 15.32 23.68 Buy 31 0.73 0.90
Consumer
Electricals
Voltas 38.81 30.42 2.18 13.65 23.07 Buy 33 0.84 0.43
Blue Star 53.41 35.50 19.05 32.66 Buy 16 1.04 0.35
* The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** The ratio of the stock’s last close to analysts’ mean price target; a ratio above 1 means the stock is trading above the PT
JANUARY- MARCH STOCK PERFORMANCE
— All data from LSEG
— $1 = 85.1700 Indian rupees
(Reporting by Ananta Agarwal and Shivani Tanna in Bengaluru; Editing by Varun H K and Mrigank Dhaniwala)
