HAVELLS

" HAVELLS GROUP 23rd January, 2024 The National Stock Exchange of India Limited BSE Limited Exchange Plaza, 5th Floor Phiroze Jeejeebhoy Towers Plot No. C/1, G Block Dalal Street Bandra Kurla Complex Mumbai- 400 001 Bandra (E) Mumbai- 400 051 Scrip Code : 517354 NSE Symbol : HAVELLS Sub: Information Update on the Unaudited Financial Results Q3 2022-23 Dear Sir, In furtherance to the un-audited standalone and consolidated financial results of the Company viz. Havells India Limited already forwarded to the stock exchanges this day in compliance of Regulations 30, 33 and other applicable provisions of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, also please find enclosed herewith an information update on the financial results of the Company for the third quarter and nine months ended 31st December, 2023. The above is for your information and records. Thanking you. Yours faithfully, for Havells India Limited (Sanjay Kumar Gupta) Company Secretary Encl: as above HAVELLS INDIA LTD. Corporate Office: QRG Towers, 20, Sector 126, Expressway, Noida -201304, U.P (INDIA) Tel: +91-120-3331000, Fax: +91-120-3332000 a E-mail: marketing@havells.com, www.havells.com Registered Office: 904, 9th Floor, Surya Kiran Building, " ..... K.G. Marg, Connaught Place, New Delhi -110001. (INDIA) rzb Consumer Care No.: I I erabtree 1800 103 1313, 1800 11 0303 (All Connec C tio IN ns : ) L , 3 0 1 1 9 1 0 - 0 4 D 16 L 6 1 9 0 8 3 3 0 P 3 L ( C L 0 a 1 nd 63 lin 0 e 4 ) HAVELLS STANDARD GSTIN: 09AAACH0351E2Z2 " HAVELLS GROUP Havells India Limited Q3 FY24 {Quarter Ended December 31, 2023} {Un-audited Financial Results} .CA I M [ S [ Srabtree HAVELLS STANDARD • Table of Contents (Havells India Standalone) 1. P&L Summary – Quarterly ................................................................................................................................3 2. Segment Wise – Quarterly ................................................................................................................................4 3. P&L Summary – Nine Months ..........................................................................................................................5 4. Segment Wise – Nine Months ..........................................................................................................................6 5. Balance Sheet ...................................................................................................................................................7 6. Cash Flow ..........................................................................................................................................................8 7. Financial Ratios .................................................................................................................................................9 2 Q3 FY24 (Quarter Ended December 31, 2023) 7% YoY Rs 433 crores Rs 288 crores Rs 2,878 crores Net Revenue Growth EBITDA PAT Net Cash 1. P&L Summary – Quarterly (In Rs crores) Q3 FY24 Q3 FY23 YoY (%) Q2 FY24 Net Revenue (NR) 4,401 4,120 7% 3,891 Contribution 892 825 8% 790 as a % of NR 20.3% 20.0% 20.3% Add: Depreciation / Amortization 88 75 81 Less: Advertising & Sales Promotion 176 128 38% 85 as a % of NR 4.0% 3.1% 2.2% Less: Other SG&A 371 348 7% 413 as a % of NR 8.4% 8.4% 10.6% EBITDA 433 424 2% 373 as a % of NR 9.8% 10.3% 9.6% Depreciation / Amortization 88 75 81 Other Income (net) 46 33 43 Profit Before Tax 391 382 2% 335 as a % of NR 8.9% 9.3% 8.6% Tax 103 98 86 Net Profit 288 284 1% 249 as a % of NR 6.5% 6.9% 6.4% Other Comprehensive Income/(Loss) (1) (1) (1) Total Comprehensive Income 287 283 1% 248 Results Summary: • Consumer demand continues to be subdued, though recent trends suggest some recovery • Infrastructure led demand remains robust supporting Cables & Professional Lighting • Advertising & sales promotion spends higher amid festive season 3 2. Segment Wise – Quarterly 2.1 Revenue Analysis (In Rs crores) Q3 FY24 Q3 FY23 YoY (%) Q2 FY24 Switchgears 521 514 1% 532 Cable 1,573 1,412 11% 1,470 Lighting & Fixtures 430 420 2% 396 Electrical Cons. Durables 961 935 3% 733 Others 269 232 16% 266 Sub Total 3,754 3,513 7% 3,398 Lloyd Consumer 647 607 7% 493 Total 4,401 4,120 7% 3,891 • Cable & wire continue to deliver healthy growth; benefit from infrastructure demand • Healthy growth in professional lighting, while consumer lighting still impacted by LED price deflation • Muted ECD growth as the festive gains were offset by fans high base • Lloyd 2Y growth at ~18% CAGR; growth levers intact for the coming season 2.2 Contribution Margin* Analysis (In %) Q3 FY24 Q3 FY23 Q2 FY24 Switchgears 39.7% 38.0% 39.6% Cable 14.5% 15.9% 15.5% Lighting & Fixtures 30.5% 29.4% 28.8% Electrical Cons. Durables 24.1% 23.3% 23.5% Others 17.7% 17.8% 16.9% Sub Total 22.5% 22.8% 22.7% Lloyd Consumer 7.4% 3.7% 3.9% Total 20.3% 20.0% 20.3% * Contribution Margins = Net Revenue less Material Cost less Manufacturing Variables less Direct Selling Variables less Depreciation • Sustained improvement in contribution margin, however segment results impacted due to higher A&P spends 4 2.3 Segment Results Analysis (In Rs crores) Q3 FY24 Q3 FY23 Q2 FY24 Segment Segment % of Segment % of NR % of NR Results Results NR Results Switchgears 126 24.1% 127 24.7% 141 26.4% Cable 163 10.4% 163 11.5% 171 11.6% Lighting & Fixtures 61 14.2% 53 12.7% 57 14.4% Electrical Cons. Durables 107 11.2% 123 13.1% 85 11.6% Others 4 1.6% 7 3.1% 4 1.5% Sub Total 462 12.3% 473 13.5% 457 13.5% Lloyd Consumer (65) (10.1)% (60) (9.8)% (73) (14.9)% Total 397 9.0% 413 10.0% 384 9.9% Finance Cost (10) (0.2)% (7) (0.2)% (9) (0.2)% Unallocable Expenses (91) (2.1)% (64) (1.6)% (91) (2.4)% Unallocable Income 56 1.3% 40 1.0% 52 1.3% Provision no longer required written back (non- 40 0.9% - - - - recurring) Profit Before Tax 391 8.9% 382 9.3% 335 8.6% 3. P&L Summary – Nine Months (In Rs crores) 9MFY24 9MFY23 YoY (%) Net Revenue (NR) 13,116 12,019 9% Contribution 2,538 2,183 16% as a % of NR 19.3% 18.2% Add: Depreciation / Amortization 245 219 Less: Advertising & Sales Promotion 395 328 21% as a % of NR 3.0% 2.7% Less: Other SG&A 1,179 1,002 18% as a % of NR 9.0% 8.3% EBITDA 1,208 1,072 13% as a % of NR 9.2% 8.9% Depreciation / Amortization 245 219 Other Income (net) 145 106 Profit Before Tax 1,108 960 15% as a % of NR 8.5% 8.0% Tax 284 247 Net Profit 824 713 16% as a % of NR 6.3% 5.9% Other Comprehensive Income/(Loss) (3) (3) Total Comprehensive Income 821 711 16% 5 4. Segment Wise – Nine Months 4.1 Revenue Analysis (In Rs crores) 9MFY24 9MFY23 YoY (%) Switchgears 1,594 1,519 5% Cable 4,528 3,964 14% Lighting & Fixtures 1,193 1,188 0% Electrical Cons. Durables 2,571 2,546 1% Others 784 697 13% Sub Total 10,670 9,914 8% Lloyd Consumer 2,445 2,105 16% Total 13,116 12,019 9% 4.2 Contribution Margin* Analysis (In %) 9MFY24 9MFY23 Switchgears 39.9% 37.9% Cable 14.9% 12.1% Lighting & Fixtures 29.5% 29.1% Electrical Cons. Durables 23.4% 23.1% Others 17.6% 17.9% Sub Total 22.5% 21.3% Lloyd Consumer 5.5% 3.3% Total 19.3% 18.2% * Contribution Margins = Net Revenue less Material Cost less Manufacturing Variables less Direct Selling Variables less Depreciation 4.3 Segment Results Analysis (In Rs crores) 9MFY24 9MFY23 Segment Results % of NR Segment Results % of NR Switchgears 416 26.1% 384 25.3% Cable 503 11.1% 336 8.5% Lighting & Fixtures 171 14.3% 171 14.4% Electrical Cons. Durables 288 11.2% 323 12.7% Others 17 2.2% 23 3.4% Sub Total 1,395 13.1% 1,238 12.5% Lloyd Consumer (199) (8.1)% (199) (9.4)% Total 1,196 9.1% 1,039 8.6% Finance Cost (28) (0.2)% (24) (0.2)% Unallocable Expenses (272) (2.1)% (186) (1.5)% Unallocable Income 173 1.3% 130 1.1% Provision no longer required written back (non-recurring) 40 0.3% - - Profit Before Tax 1,108 8.5% 960 8.0% 6 5. Balance Sheet (In Rs crores) Dec'23 (UnAudited) Mar'23 (Audited) ASSETS Non-current assets Property, plant and equipment 2,458 2,228 Capital work in progress 310 163 Goodwill 310 310 Other intangible assets 1,071 1,082 Intangible assets under development 6 3 Investment in subsidiaries 0.5 0 Financial assets (i) Investments 20 20 (ii) Trade receivables 1 2 (iii) Other financial assets 311 149 Contract assets 16 26 Other non-current assets 87 79 Non Current tax assets (net) 29 29 Total non current assets 4,620 4,091 Current assets Inventories 3,703 3,708 Financial assets (i) Investments - 181 (ii) Trade receivables 637 971 (iii) Cash and cash equivalents 218 457 (iv) Bank balances other than (iii) above 2,383 1,405 (v) Other financial assets 42 117 Contract assets 27 27 Other current assets 175 175 Total current assets 7,185 7,041 Assets classified as held for sale 0 11 Total assets 11,806 11,143 EQUITY AND LIABILITIES Equity Equity share capital 63 63 Other equity 7,115 6,552 Total equity 7,177 6,614 Non-current liabilities Financial liabilities (ii) Lease liabilities 234 187 (iii) Other financial liabilities 19 7 Contract liabilities 4 4 Other Non current liabilities 9 - Provisions 70 137 Deferred tax liabilities (Net) 368 362 Total non current liabilities 704 696 Current liabilities Financial liabilities (i) Lease liabilities 56 36 (ii) Trade payables a) Total outstanding dues of micro enterprises and small enterprises 181 155 b) Total outstanding dues of creditors other than micro enterprises and small enterprises 2,327 2,488 (iii) Other financial liabilities 803 625 Contract liabilities 90 83 Other current liabilities 132 139 Provisions 282 275 Current tax liabilities (net) 54 32 Total current liabilities 3,924 3,832 Total equity and liabilities 11,806 11,143 7 6. Cash Flow (In Rs crores) 9M FY24 FY23 PBT 1,108 1,450 Depreciation 245 296 Others (75) (93) Working Capital Changes 410 (697) Taxes Paid (256) (392) Operating Net Cash Flow (A) 1,433 565 Capex (516) (588) Others 117 106 Net Cash Flow from Investing Act. (B) (399) (481) Dividends paid (282) (470) Net borrowings availed/(repaid) 0 (394) Others (32) (43) Net Cash Flow from Financing Act. (C) (314) (907) Net Cash Flow (A+B+C) 720 (824) Cash & Cash Equivalent at beginning 2,158 2,982 Cash & Cash Equivalent at end 2,878 2,158 * Cash & Cash Equivalent includes bank deposits also • Continues to augment capacities with capex in cable, Lloyd and lighting categories 8 7. Financial Ratios Q3 FY24 Q3 FY23 Q2 FY24 Profitability OPM % 9.8% 10.3% 9.6% {EBITDA/NR} ROE % 17.4% 17.2% 17.8% {PAT TTM / Average Net Worth TTM} ROCE % 24.0% 23.2% 24.4% {EBIT TTM / Average Capital Employed TTM (Net Worth + Debt)} Liquidity Current Ratio 1.8 1.9 2.0 {CA/CL} Debtor Days 13 15 11 {Debtors/NR TTM} Inventory Days 75 81 74 {Inventories/NR TTM} Creditor Days 51 54 45 {Creditors/NR TTM} Net working capital days* 37 42 39 *based on TTM sales Disclosure of information, communication with investors / analysts / financial community We recommend that readers refer to the Havells India financials to get a better appreciation of the business performance. A copy of the latest Financial Results of Havells India Limited are available on Havells website – www.havells.com. The results are limited reviewed by the Auditors of the Company and approved by the Board of Directors in their meeting held on 23rd January 2024. Havells will be issuing fresh Information Update, like the one you are reading now; on the day it declares its Financial Results. Some forward looking statements on projections, estimates, expectations, outlook etc. are included in such updates to help investors / analysts get a better comprehension of the Company's prospects and make informed investment decisions. Actual results may, however, differ materially from those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, impact of competing products and their pricing, product demand and supply constraints. The information contained in such updates is made public and does not therefore constitute unpublished price sensitive information under the SEBI (Prohibition of Insider Trading) Regulations, 1992. For further information please visit www.havells.com or contact us at investors@havells.com 9