Havells India - March 2013 Results Preview - Motilal Oswal

- We expect continued strong demand in domestic market, while price increase in fans and consumer appliances during 3QFY13 are likely to offset the cost pressures. Consumer appliances, including geysors, have been particularly impacted by the currency movements.

- We expect the price increase of 3-4% in Sylvania is likely to offset the pressure on margins. Margins in Europe have recovered to 5% during 3QFY13 after falling to 0.8% in 2QFY13, v/s 8.9% in FY12. Also, revenue growth in Europe continues to show a declining trend and we expect the trend to continue with a decline of 6% in 4QFY13E.

Source : Equity Bulls

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