Havells India - Q4FY12 result first cut - Microsec Research

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.

Source : Equity Bulls

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