Havells India slips 4% in-trade after Q1 results

NEW DELHI: Havells India has announced its first quarter results on Monday which were below market expectations. The company's Q1 net profit was up 7.4 % at Rs 57.6 crore versus Rs 53.3 crore. The company clocked a 16% rise in sales at Rs 800 crore vs Rs 689 crore.

"Entire expense of advertising has been taken in first quarter itself which has resulted in lower PAT figure", says Anil Gupta, Joint MD, Havells India Ltd in an interview with ET Now.

Advertising spend in this Q1 was 26 crore. "While the overall market might be sluggish due to our increased penetration we have experienced growth of 15 per cent as we had set out to achieve", Anil said.

"Going forward with all the measures of brand building, cost reduction ect the company is positive in achieving required growth target for the year", adds Anil.

At 03:40 PM, shares in the company closed 2.3 per cent lower at Rs 354.50. The stock dropped over 4 per cent in the intra-day trade today post announcement of results.

Analysts call:

"Havells India Ltd started a good downtrend which will remain in force for some time to come", says Mitesh Thacker or miteshthacker.com. "The stock might fall towards levels of Rs 330-310", adds Mitesh.