Quote on Havells & CEAT Q2FY25 by Arun Agarwal, VP-Fundamental Research, Kotak Securities
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Below the Quote on Havells & CEAT Q2FY25 by Arun Agarwal, VP-Fundamental Research, Kotak Securities
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.
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