2024-10-18 01:50:09 pm | Source: Kotak Securities Ltd
Quote on Havells & CEAT Q2FY25 by Arun Agarwal, VP-Fundamental Research, Kotak Securities
Below the Quote on Havells & CEAT Q2FY25 by Arun Agarwal, VP-Fundamental Research, Kotak Securities
Havells Q2FY25
Havells reported healthy revenue growth yoy supported by high double-digit growth in the cable & wires, ECD and Lloyd segment. Start of festive season has seen a pick-up in demand but that could partly be due to an early Diwali this year. Lloyd registered a healthy revenue growth in a seasonally weak quarter. However, the margin performance in some segments were weak during the quarter. Cable & wires, ECD, switchgear and lighting segment saw yoy and qoq decline in EBIT margin. Cable & wires EBIT margin contracted amid high-cost inventory consumption. The company expects cable & wires EBIT margin to normalize post this raw material volatility.
Havells reported healthy revenue growth yoy supported by high double-digit growth in the cable & wires, ECD and Lloyd segment. Start of festive season has seen a pick-up in demand but that could partly be due to an early Diwali this year. Lloyd registered a healthy revenue growth in a seasonally weak quarter. However, the margin performance in some segments were weak during the quarter. Cable & wires, ECD, switchgear and lighting segment saw yoy and qoq decline in EBIT margin. Cable & wires EBIT margin contracted amid high-cost inventory consumption. The company expects cable & wires EBIT margin to normalize post this raw material volatility.
CEAT Q2FY25
CEAT’s revenue growth of 8% in Q2FY25 was supported by replacement, export and two-wheeler OEM segment. Gross margin and EBITDA margin declined yoy and qoq due to rise in raw material cost basket. While most of the companies in tyre segment have taken price increase, however further price hike is important to offset raw material cost headwind and for the companies to return to their earlier gross /EBITDA margin levels.
Above views are of the author and not of the website kindly read disclaimer
Disclaimer:
The content of this article is for informational purposes only and should not be considered financial or investment advice. Investments in financial markets are subject to market risks, and past performance is not indicative of future results. Readers are strongly advised to consult a licensed financial expert or advisor for tailored advice before making any investment decisions. The data and information presented in this article may not be accurate, comprehensive, or up-to-date. Readers should not rely solely on the content of this article for any current or future financial references.
To Read Complete Disclaimer Click Here
Latest News
41 pc divisive pool given to states in previous fina...
Bank Nifty witnessed a gap -up opening and maintaine...
Dixon Technologies?` net profit rises over 100 pc in...
Nifty opened with an upward gap and remained in posi...
Centre introduces `Entity Locker` for smooth busines...
India VIX increased by 4.23% to close at 16.42 touch...
Total area under rabi crops crosses 640 lakh hectares
The Nifty 50 index added 141.55 points or 0.61% to 2...
After Elon Musk-Mukesh Ambani tussle, India bets sat...
Market is expected to open on a flattish note and li...
