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Havells shares tumble after Q2 profit falls 7%

Havells shares suffered sharp losses on Thursday a day after the electrical equipment company posted its financial results for the September quarter.

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By CNBCTV18.com Oct 21, 2021 10:27:17 AM IST (Updated)

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Havells shares tumble after Q2 profit falls 7%
Havells India Ltd shares suffered sharp losses on Thursday, a day after the Noida-based consumer electrical goods maker posted a 7.3 percent decline in net profit for the quarter ended September 30.

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Havells shares traded 8.5 percent lower at Rs 1,285.7 on the BSE in morning deals, underperforming the headline Sensex index, which was down 0.1 percent amid volatile trade. Earlier in the day, Havells shares declined as much as 9.3 percent to Rs 1,273.4.
Havells reported a net profit of Rs 302.4 crore for the second quarter of the current financial year. However, its revenue from operations rose 31.7 percent to Rs 3,238 crore, according to a regulatory filing after market hours on Wednesday.
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The company said its outlook on demand remains fairly positive. The management saw healthy revenue growth across verticals, despite margin headwinds due to higher commodity costs.
Havells reported total expenses of Rs 2,866.5 crore, up 35.6 percent on a year-on-year basis.
Havells shares have rewarded its investors with a return of 80.6 percent in the past year, and 27.9 percent in the last six months alone.
Brokerage UBS maintained a 'neutral' call on Havells with a target price of Rs 1,500. The company's margin decline has manifested with a lag, though its revenue beat expectations, UBS said.
The brokerage also said that much of the potential upside in the stock is priced in.
At 10:20 am, shares of Havells were down 10 percent, or 140.65 points, at Rs 1,266.05 apiece on the BSE.

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