Havells India Expects Decent Growth Across Categories with Focus on Expansion, Says MD Anil Rai Gupta
Havells India Ltd., a leading electrical goods company, is expecting to grow decently across all business categories with a focus on capacity expansion and foraying into new geographies, according to its Chairman and Managing Director, Anil Rai Gupta.
In an exclusive interview with NDTV Profit, Gupta shared the company’s plans to utilize its surplus cash on its balance sheet for expanding capacity as well as exploring new geographies. The company recently utilized its extra cash in the renewable energy capacity and secured a supply chain for solar energy expansion.
The company has undertaken capacity expansion in the underground cable segment, which is witnessing strong growth alongside the company’s entry into international markets. Demand is expected to remain robust, Gupta added.
Havells India will be investing around ₹2,000 crore in its inorganic businesses next year, Gupta further added.
However, Havells India is not looking into any acquisitions, Gupta said.
The company is focused on strengthening its core business and expanding its presence in the Indian market. The company’s focus on capacity expansion and foraying into new geographies is expected to drive growth across all business categories.
In the first quarter of the current fiscal year, Havells India reported a decent set of numbers, with revenue growth of 15% year on year. The company’s revenue stood at ₹3,444 crore in the first quarter, while net profit stood at ₹444 crore.
However, the company’s inventory clearance has been slow, as tertiary sales did not keep pace with primary sales during the first quarter. Inventory clearance has been weaker compared to last year, which saw an unusually strong summer in four regions of the country. This year, a good monsoon led to a drop in demand, making the April-June quarter particularly challenging for summer products. However, the outlook is expected to improve in the second half, Gupta added.
Havells India’s stock has been under pressure in recent times due to concerns over inventory clearance and slowing demand. However, the company’s focus on capacity expansion and foraying into new geographies is expected to drive growth across all business categories, which could reverse the stock’s trend.
In conclusion, Havells India’s plans to focus on capacity expansion and foraying into new geographies are expected to drive growth across all business categories. The company’s focus on strengthening its core business and expanding its presence in the Indian market is expected to drive value for its shareholders.
The company’s plans to invest ₹2,000 crore in its inorganic businesses next year are expected to drive growth and increase its presence in the Indian market. The company’s focus on renewable energy and foraying into new geographies is expected to create new opportunities for growth and expansion.
Havells India’s stock has been under pressure in recent times due to concerns over inventory clearance and slowing demand. However, the company’s focus on capacity expansion and foraying into new geographies is expected to drive growth across all business categories, which could reverse the stock’s trend.
