Havells India shares fall 5% despite strong Q4 after management cites inflation pressures

Shares of

declined as much as 5% on Wednesday, April 23, after the company reported its earnings for the January to March period after market hours on Tuesday. EBIT margins were above expectations across all segments; particularly noteworthy was the margin expansion in ECD, Lloyd, and emerging categories. However, EBIT margins declined in the switchgear, lighting, and cables segments. Revenue (excluding Lloyd) grew 14% YoY, in line with Morgan Stanley estimates, while EBIT margins (ex-Lloyd) declined 45 basis points YoY to 13.9% (MSe: 12.8%).