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Home appliances maker Havells India reported a smaller-than-expected first-quarter profit on Thursday, as higher expenses offset improved demand for its air conditioners and fans.

Profit rose 43.1% from a year earlier to 4.11 billion rupees ($49.15 million) for the three months ended June 30, missing analysts' expectations of 4.31 billion rupees, as per LSEG data.

The water heater maker's revenue from operations rose 20.2% to 57.98 billion rupees, while total expenses rose 18.1% to 53.22 billion rupees.

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KEY CONTEXT

India's summer lasts from March to May, yet many Indian cities saw warmer nights during June. Hot weather increases consumer spending on electrical appliances.

Analysts said that the country's consumer durables sector experienced healthy demand during the quarter due to severe summer and despite price increases.

Prices of raw material such as copper and aluminium rose, they added.

Havells India, biggest among its peers by market capitalisation, is the first to report first-quarter results.

PEER COMPARISON

Valuation (next 12 Estimates (next 12 Analysts' sentiment

months) months)

RIC PE EV/EBI Price/S Revenue Profit Mean # of analysts Stock to price Div

TDA ales growth % growth % rating* target** yield

(%)

Havells India Ltd HVEL.NS 66.68 45.63 5.29 15.25 27.86 Hold 16 1.06 0.48

Crompton Greaves CROP.NS 44.45 29.34 2.77 12.44 31.54 Buy 31 1.05 0.70

Consumer

Electricals Ltd

Voltas Ltd VOLT.NS 58.84 44.60 2.66 16.22 109.53 Hold 34 1.13 0.36

Blue Star Ltd BLUS.NS 57.47 37.96 NULL 20.83 35.77 Buy 19 1.21 0.40

* The mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell

** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT

APRIL-JUNE STOCK PERFORMANCE

-- All data from LSEG

-- $1 = 83.6170 Indian rupees