(MENAFN- KNN India)
Ghitorni, Nov 19 (KNN) Havells India, a leading player in the electrical goods and home appliances sector, announced plans to establish a refrigerator manufacturing facility in Ghitorni, Rajasthan, with an investment of approximately Rs 480 crore.
The new plant, expected to ramp up production by the second quarter of FY27, will have a capacity to produce 14 lakh units annually. The company has confirmed that this investment will be financed through internal accruals.
The move aims to benefit from backward integration and achieve economies of scale, enabling the company to expand its presence in the growing home appliances market.
This announcement comes on the heels of Havells India's quarterly results, which showed mixed performance. In its September quarter results, the company reported a 7.7 per cent year-on-year increase in net profit to Rs 268.2 crore.
However, the results fell short of analyst expectations, which had forecasted a profit of Rs 328 crore, according to a CNBC-TV18 poll.
On the revenue front, Havells saw a solid 16.4 per cent growth, with topline sales rising to Rs 4,539.3 crore, surpassing analysts' consensus estimate of Rs 4,332 crore.
Despite this, the company's earnings before interest, tax, depreciation, and amortization (EBITDA) remained flat at Rs 374.6 crore, well below the expected Rs 459 crore.
The EBITDA margin also contracted by 140 basis points to 8.2 per cent, down from 9.6 per cent in the same quarter last year, and lower than the anticipated 10.6 per cent.
Havells attributed the underperformance to volatility in commodity prices, particularly in its cables segment, which negatively impacted its contribution margins.
Additionally, the company highlighted the advancement of advertising expenditures into the September quarter due to the shift in the festive season, which further squeezed margins.
Despite these challenges, Havells remains focused on long-term growth, with strategic investments like the new manufacturing facility reinforcing its expansion plans.
(KNN Bureau)
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