Havells India - Minor Deviation, Maintain Buy - Emkay

- Results in line, but misses EBIDTA margins - revenues grew 24% yoy to Rs 10.5bn led by C&W and Lighting; EBIDTA margins rose 30bps to 12% & APAT at Rs 915mn, up 33% yoy.

- C&W and L&F segment drive revenue growth in the quarter, but product mix change (lower contribution from Switchgear) and warranty cost impacts our EBIDTA margins estimates.

- Sylvania revenues flattish at € 112mn impacted by de-growth in Europe and LATAM, while EBIDTA margin stays at 8.5%. Maintain focus on higher profitability led by operational gains.

- Minor deviation this quarter. Standalone growth to remain intact led by distribution network, while Sylvania to continue gain profitability. Maintain Buy with TP of Rs600/Share.

Source : Equity Bulls

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