You are on page 1of 2

Havells Turns around Sylvania

Sylvania registers profit after successful completion of restructuring


Havells consolidated net sales up 6% (15% on comparable basis) during Q2 FY11; net
profit turns positive

New Delhi, 1stNovember, 2010: Havells India Limited, one of the largest & India's
fastest growing electrical and power distribution equipment manufacturer today
announced its financial results for the second quarter ended 30th September, 2010 (Q2
FY11).

Net sales on consolidated basis increased by 6% % to Rs. 1401 crore during Q2FY11
from Rs. 1319 crore in Q2FY10, on account of sustained growth in the domestic
business segments and robust performance of the company’s subsidiaries, especially
Sylvania. EBIDTA increased by 36% % to Rs. 116 crore in Q2FY11 from Rs. 85 crore
in Q2FY10. The company reported positive net profit of Rs.71 crore in Q2 FY11 as
against loss of Rs. 14 crores in Q2 FY10. The consolidated numbers include the
performances of Havells India (the parent company) and its two subsidiaries (Standard
Electrical and Havells Sylvania).

The quarter under review proved to be eventful for Havells Sylvania, the European
subsidiary of the company. The subsidiary, for the first time since its acquisition (in April
2007), sprung back to black with a net profit of Euro 1.3 mn (Rs. 8.1 crore) in Q2FY11
from a loss of Euro 10.2 mn (Rs. 71 crore) in Q2FY10. The net sales for the subsidiary
increased by 12% to Euro 117.7 mn (Rs. 706.1 crore) from Euro 105.6 mn (Rs. 730
crore) in Q2FY10. However, in wake of improved efficiencies and cost control, EBIDTA
increased to Euro 5.5 mn (Rs. 33.4 crore) in Q2FY11 from Euro 0.6 mn (Rs. 3.9 crore)
in Q2FY10. The company’s EBIDTA margin and net margin for Q2FY11 were 4.7%
(0.57% in Q2FY10) and 1.1% respectively.

On a standalone basis, net sales of Havells India increased by 16% to Rs. 690 crore in
Q2FY11 from Rs. 596 crore in Q2FY10, led by improved performance of consumer
division. Net profit for the quarter increased by 8% to Rs. 58.6 crore from Rs. 54.2 crore
while EBIDTA decreased marginally to Rs. 77.3 crore in Q2FY11 from Rs. 78.1 crore in
Q2FY10, on account of higher input cost.

Reflecting on the performance, Mr. Anil Gupta, Joint Managing Director, Havells India,
said: “It is heartening to see our dedicated efforts over the past one year translating into
numbers for the quarter. Our organization-wide restructuring process concluded
successfully, resulting in higher efficiency and streamlined operations. The turnaround
of our subsidiary - Havells Sylvania not only propelled the company’s consolidated
growth but also enabled us to create a scalable business model, posed to deliver
sustained growth and create shareholder wealth consistently. We continue to strengthen
our businesses, widen our reach, rationalize our costs and improve our product profile
to sustain the growth achieved during the quarter.”

The company’s net sales on consolidated basis for H1 FY11 increased by 5% to Rs.
2773 crore from Rs. 2627 crore in H1FY10. EBIDTA for the first half registered an
increase of 44% to Rs. 235 crore, while the net profit was positive to Rs.127 crore.

About Havells India Limited


Havells India Limited alongwith its subsidiary Sylvania BV is a leading domestic
electrical and a global lighting player. It has offices in 52 countries with 94 branches
and 8000 professional with 11 globally benchmarked manufacturing facilities. While
Havells is one of the largest & India's fastest growing electrical and power
distribution equipment manufacturer & Sylvania on the other hand is one of the world’s
largest and premium lighting manufacturers brand with world-wide business
operations.

Since the acquisition of Sylvania in 2007, Havells entrepreneurial culture was well
integrated with the local Sylvania management & together ( Havells & Sylvania )
are now a formidable force in the electrical & lighting field globally. Owns some of the
prestigious global brands like Crabtree, Sylvania, Concord, Luminance, & Linolite.
Havells Manufactures & markets products ranging from Industrial & Domestic Circuit
Protection Switchgear, Cables & Wires, Motors, Fans, Electric Water Heaters, Power
Capacitors, CFL Lamps, Luminaries for Domestic, Commercial & Industrial applications
& Modular Switches covering the entire gamut of household, commercial and
industrial electrical needs. Havells is a name synonymous with excellence and expertise
in the electrical industry. Its 20000 strong global distribution network is prompt to service
customers.

The company has acquired a number of International certifications, like BASEC,


CSA, KEMA, CB, CE, ASTA, CPA, SEMKO, SIRIUM (Malaysia), SPRING
(Singapore), TSE (Turkey), SNI (Indonesia) and EDD (Bahrain) for various products.
Today, Havells and its brands have emerged as the preferred choice of electrical
products for discerning individuals and industrial consumers both in India and abroad.

For any further details, please write to:


marketing@havells.com

Dated: Monday 1st November, 2010

You might also like