Share of Havells India closed over 4% lower today after the firm reported a 70.95 per cent rise in consolidated net profit in Q4. Motilal Oswal said earnings were below expectations. The brokerage said it expected strong operating performance adding that higher tax rate led to earnings miss. Net profit came in 10% below their estimate.
Share of Havells India slipped 4.59% intra day to Rs 1,023.45 on BSE. The large cap stock has fallen 4.27% in the last 2 days. The share trades higher than 20 day and 200 day moving averages but lower than 5 day, 50 day and 100 day moving averages. However, the share has gained 120% in one year and risen 12.24% since the beginning of this year.
Later, the stock ended 4.18% lower at Rs 1027 on BSE.
Market cap of the firm fell to Rs 64,896 crore.
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Total 3.51 lakh shares of the firm changed hands amounting to turnover of Rs 36.56 crore. The share hit 52-week high of Rs 1237 on February 17, 2021 and 52 week low of Rs 454.45 on May 26, 2020.
The consumer electrical goods maker reported a 70.95 per cent rise in consolidated net profit at Rs 303.83 crore in Q4 against net profit of Rs 177.73 crore in the year-ago period.
Revenue from operations rose 50.59 per cent to Rs 3,339.21 crore in Q4 against Rs 2,217.44 crore in the corresponding period of 2019-20.
"Q4 sustained the growth momentum gained in Q3 with the highest quarterly sales. The tumultuous year has ended with reasonable growth in revenues and profitability, underpinning Havells'' resilience amidst uncertainty," Havells India Chairman and Managing Director Anil Rai Gupta said.
Havells' total expenses in Q4 rose to Rs 2,919.54 crore against Rs 2,040.10 crore in the year ago period.
The company board has recommended a final dividend at Rs 3.50 per equity share for the financial year 2020-21.
Macquarie said the firm reported a marginal revenue miss but margins were healthy. Key surprise was solid cable segment margins that expanded QoQ. Margins in other segments declined QoQ owing to higher commodity prices. The firm's balance sheet remains healthy. The brokerage has given a target of Rs 1,276 for the FMCG stock. However, CLSA has given a sell call on the stock with a target price of Rs 960.
The international brokerage said the Q4 was an improved show but weak demand and margin pressure to affect near-term performance. Amid weak demand and inflationary commodity cost in 1QFY21, management cautioned on the near-term margin pressure.