Havells, Polycab flip the switch on high-voltage growth potential
Business Standard|October 21, 2024
Margin constraints could trip up earnings performance
RAM PRASAD SAHU
Havells, Polycab flip the switch on high-voltage growth potential

The July-September quarter (Q2) results for 2024-25 (FY25) from the largest listed consumer electrical solutions companies, Havells India and Polycab India, followed similar trends, demonstrating robust revenue growth while falling short of profitability expectations.

Both companies witnessed overall growth in the 16-30 per cent range, but margins declined by 130-290 basis points (bps) year-on-year (Y-o-Y). Although brokerages are bullish on long-term prospects and have raised revenue projections, earnings forecasts have been revised downward due to margin pressures.

The cable and wire (C&W) business remains the core growth driver for both companies. For Havells, this segment, which accounts for 40 per cent of revenues, reported a growth of 23 per cent Y-o-Y. Polycab, the market leader in the organised C&W segment in India with a share of 25-26 per cent, reported a 24 per cent increase compared to the year-ago quarter. The C&W segment constitutes 85 per cent of the company's overall revenues.

This story is from the October 21, 2024 edition of Business Standard.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

This story is from the October 21, 2024 edition of Business Standard.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

MORE STORIES FROM BUSINESS STANDARDView All
Pioneer of parallel cinema dies at 90
Business Standard

Pioneer of parallel cinema dies at 90

Veteran filmmaker Shyam Benegal, who heralded the Indian parallel cinema movement in the 1970s and 1980s with films such as Ankur, Nishant and Manthan, died on Monday, his daughter Pia said. He was 90.

time-read
2 mins  |
December 24, 2024
How tech is changing the landscape of elder care
Business Standard

How tech is changing the landscape of elder care

The concluding part of the silver economy series looks at innovative apps and wearables that are empowering seniors and their families

time-read
2 mins  |
December 24, 2024
ALGO RHYTHM AND BLUES
Business Standard

ALGO RHYTHM AND BLUES

Can Sebi's draft rules on algorithm-based trading level the playing field between institutional and non-institutional investors?

time-read
4 mins  |
December 24, 2024
Business Standard

AVOIDING MIS-SELLING BY MF DISTRIBUTORS Say no to NFOs, buy direct plans and seek advice from Sebi RIAs

The Securities and Exchange Board of India (Sebi) has implemented a new rule to curb unnecessary portfolio churn by distributors, usually done during the launch of new fund offers (NFOs) to pocket higher commissions.

time-read
2 mins  |
December 24, 2024
Amber Enterprises posts sharpest rise in 2 mths
Business Standard

Amber Enterprises posts sharpest rise in 2 mths

13% gains driven by block deal in which 1% equity changed hands

time-read
2 mins  |
December 24, 2024
Business Standard

NEW LISTINGS ADD 3% TO INDIA'S MCAP IN 2024

New listings through initial public offerings (IPOs) in 2024 contributed nearly 3 per cent (₹14 trillion) to India's market capitalisation, surpassing last year's contribution of 1.4 per cent (₹5 trillion).

time-read
1 min  |
December 24, 2024
Business Standard

Weak management commentary weighs on Siemens stock

Siemens's share price has lost ground in the past few sessions following weak management commentary.

time-read
2 mins  |
December 24, 2024
Business Standard

Mkts stage sharp recovery after five days of fall

Equity benchmark indices Sensex and Nifty rebounded sharply on Monday after five days of steep decline amid value buying at lower levels and a rally in global markets.

time-read
1 min  |
December 24, 2024
Business Standard

Public offers see investor rush

The five initial public offerings (IPOs) that closed on Monday attracted cumulative bids worth ₹1.4 trillion against ₹2,909 crore they were looking to raise. These offerings were subscribed between 11 and 195 times.

time-read
1 min  |
December 24, 2024
Zomato pips Maruti, HUL in Sensex weight
Business Standard

Zomato pips Maruti, HUL in Sensex weight

Becomes first new-age firm to join 30-share benchmark

time-read
1 min  |
December 24, 2024