Electric equipment maker Havells India reported a 73% fall in profit to Rs 97.4 crore for the final quarter of FY17.
Electric equipment maker Havells India reported a 73% fall in profit to Rs 97.4 crore for the final quarter of FY17. The company has booked impairment charges worth Rs 76.8 crore in the period related to its various foreign investments. The company’s annual profit fell more than 24% to Rs 536.3 crore. Net revenue in FY17 increased by 15% to Rs 6,135.3 crore.
The company said that it has decided to entirely exit its international operations. It expects to receive about Rs 204 crore during the year from the planned exit from its businesses in Sylvania and Thailand. The cable unit, which constitutes 39% of the company’s revenue mix, is recovering from low commodity price overhang, the company noted. Its electrical consumer durables segment margins were weighed down by demonetisation schemes. However, the segment grew by 22% to `1, 378 crore in FY17.
Anil Rai Gupta, chairman & managing director of the company, said that margins were impacted due to gradual withdrawal of demonetisation schemes and deferred price increase against raw material costs escalation.
In the final quarter, the company forayed into the estimated $15-billion television and air conditioner market with the acquisition of the consumer durable business of Lloyd for `1,600 crore. The investment is a part of the company’s “Deeper into Homes” strategy.
In line with the same policy, Havells also entered the personal grooming products segment with the launch of its line of electric shavers and hair dryers. “We are positive on the future with successful completion of the Lloyd consumer business and a general improvement in the business environment,” Rai Gupta said.