23 October 2017
Q2FY18 Results Update | Sector: Capital Goods
Havells India
Neutral
BSE SENSEX
32,507
Bloomberg
Equity Shares (m)
M.Cap.(INRb)/(USDb)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
Avg Val, INRm
Free float (%)
S&P CNX
10,185
HAVL IN
Operating performance exceeds expectations
625
Operating performance impressive led by better-than-estimated margins:
340.8 / 5.0
Revenue grew 22.4% YoY to INR17.8b (est. of INR19b) in 2QFY18. However,
554 / 304
operating profit of INR2.6b (+26.3% YoY) was ahead of our estimate of
8/3/16
INR2.2b, led by price hikes in the cables & wires segment, lower ad spend
614.0
and withdrawal of dealer schemes. PAT of INR1.7b (+17.3% YoY) was above
38.4
CMP: INR542
TP: INR570 (+5%)
Financials & Valuations (INR b)
Y/E Mar
Net Sales
EBITDA
Adj PAT
Adj EPS (INR)
EPS Gr. (%)
BV/Sh(INR)
RoE (%)
RoCE (%)
P/E (x)
P/BV (x)
2018E
83.2
10.7
7.2
11.5
20.5
59.0
19.5
19.7
47.1
9.2
2019E
100.4
13.6
8.9
14.3
23.9
67.2
21.2
21.9
38.0
8.1
2020E
114.7
15.8
10.5
16.8
17.7
76.8
21.9
22.8
32.3
7.1
Estimate change
TP change
Rating change
our estimate of INR1.4b.
Core business (ex-Lloyd) growth muted on weak demand and low level of
restocking:
Core business revenue grew at a muted 4% YoY to INR15.1b
(+6.7% YoY, adj. for excise impact on exempted zones), below our estimate
of INR15.8b, due to weak demand in construction and industrial segments
and lower-than-expected restocking by retailers. Despite muted revenue
growth, operating profit increased 17% YoY to INR2.4b and adjusted EBIDTA
margin improved 180bp YoY to 15.8%, driven by price hikes taken in the
cables & wires segment, low advertising spend and withdrawal of dealer
schemes (2.3% v/s 3.3% in 2QFY17). Net profit improved 9% YoY to INR1.1b.
Lloyd’s consumer business grows 11% YoY:
The newly acquired Lloyd
business recorded revenue of INR2.7b (+11% YoY). Operating profit stood at
INR189m and EBIDTA margin at 7.0%. Cost-control measures led to margin
improvement on a QoQ basis (7.0% v/s 4.8% in 1QFY18).
Working capital cycle contraction led by increase in payable days:
Core net
working capital cycle contracted to -1 day from 30 days in 2QFY17. During
the quarter, creditor days were up to 89 from 48 in 2QFY17 due to vendor
financing and extended credit cycle provided by Lloyd’s vendors.
Valuation and view:
We raise our earnings estimate for FY18/19 by 5% each
to factor in better-than-estimated operating margins driven by cost-control
measures. We maintain our
Neutral
rating and raise our target price to
INR570, as we roll over our exit multiple to Dec-19E EPS of INR16.5.
FY17
2Q
3Q
14,522 15,060
8.7 13.2
2,034 1,907
7.6
4.0
14.0 12.7
308
301
19
15
323
264
-
189.5
2,030 1,877
572
537
28.2 28.6
1,458 1,530
22.0 27.6
1,458 1,135
21.1
-4.0
FY18
2Q
3QE
17,774 20,883
22.4 38.7
2,569 2,958
26.3 55.1
14.5 14.2
349
320
67
70
287
100
-
-
2,440 2,668
730
747
29.9 28.0
1,710 1,921
17.3 25.6
1,710 1,921
17.3 69.2
FY17 FY18E
4QE
25,978 61,353 83,240
51.9
6.2
35.7
3,424 8,241 10,675
49.1
9.2
29.5
13.2
13.4
12.8
309 1,196 1,314
79
122
250
115 1,343
850
-
3,151 8,266 9,962
803 2,298 2,769
25.5
27.8
27.8
2,347 5,969 7,192
147.9
-34.2
20.5
2,347 5,969 7,192
36.9
16.9
20.5
(INR Million)
MOSL
Var.
2QE
19,030
-6.6%
31.0
2,165
18.6%
6.5
11.4
330
30
120
0.0
1,925
26.7%
539
28.0
1,386
23.4%
-4.9
1,386
23.4%
-1.6
Quarterly Performance (Standalone)
Y/E March
Sales
Change (%)
Adj EBITDA
Change (%)
Adj EBITDA margin (%)
Depreciation
Interest
Other Income
Extra-ordinary Items
PBT
Tax
Effective Tax Rate (%)
Reported PAT
Change (%)
Adj PAT
Change (%)
1Q
14,668
17.1
2,004
23.7
13.7
280
16
314
-
2,022
567
28.0
1,456
36.3
1,456
22.2
4Q
17,102
17.2
2,296
3.5
13.4
308
71
419
(768)
2,337
622
26.6
947
-74.1
1,715
5.0
1Q
18,605
26.8
1,724
-14.0
9.3
336
34
348
-
1,703
489
28.7
1,214
-16.6
1,214
-16.6
Ankur Sharma – Research Analyst
(Ankur.VSharma@MotilalOswal.com); +91 22 6129 1556
Amit Shah – Research Analyst
(Amit.Shah@MotilalOswal.com); +91 22 6129 1543
Investors are advised to refer through important disclosures made at the last page of the Research Report.
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.

Havells India
2QFY18 operational performance above our estimates
Revenues grew 22.4% YoY to INR17.8b in 2QFY18, below our estimate of
INR19.0b, on account of weak demand for construction and industrial products.
The key business segment Cables & Wires registered 2% YoY revenue growth to
INR5.7b, led by price hikes taken by the company (+12-13% YoY in wires
segment and 5-6% YoY in cables segment). Domestic cables segment witnessed
12-14% volume decline, whereas wire business volume declined 5% YoY to
INR3.7b. Switchgear revenue declined 5% YoY. Lighting segment grew 21% YoY
led by 38% YoY growth in the Led segment.
Gross margin expanded 60bp YoY to 42.3% as the company has been able to
pass on the cost increase to end-consumers.
EBITDA margin expanded 50bp YoY to 14.5% (v/s est. of 11.4%). Ad spend stood
at 2.9% of sales (3.3% in 2QFY17).
HAVL’s 2QFY18 adjusted PAT at INR1.7b (+17% YoY) was meaningfully above our
estimate of INR1.4b. The beat was primarily on account of price hike taken in
the cables & wires segment, lower ad spend and withdrawal of dealer schemes.
Segmental performance: Revenue growth impacted weak end-segment demand
Switchgears witnessed decline of 5% to INR3.3b, led by weak demand in the
housing segment. Contribution margin improved 210bp to 41.3%, as Havells was
able to pass on the cost increase to the channel partners.
Electrical Consumer Durables registered muted growth of 4.2% YoY to INR3.2b,
impacted by a decline in primary off-take and inventory de-stocking by channel
partners, given uncertainty on input credit availability under GST regime.
Contribution margin contracted 300bp YoY to 22.2%.
Lighting division sales registered strong growth of 21.0% YoY to INR2.9b, led by
38% YoY growth in the LED segment (82% of lighting segment sales). Lighting
contribution margin improved 40bp YoY to 27.0%.
Cable & Wires revenues registered growth of 2% YoY to INR5.7b, despite volume
decline of 12-14% in the domestic cables segment and of 5% in the wires
segment. Revenue growth was driven by price hike taken by the company in the
wires & cables segment
Newly acquired Lloyd business registered revenue of INR2.7b (+11% YoY).
Operating profit stood at INR189m and EBIDTA margin at 7.0%. Management
indicated that Lloyd’s quarterly performance has been in line with its initial
plans on growth and margins.
23 October 2017
2

Havells India
Exhibit 1: Revenues improved 22% YoY driven by better-
than-expected performance in lighting division and
incremental contribution from the Lloyd acquisition
Standalone Sales (INR b)
24 25
18
13 12
2
22
12 12
21
16
5 3
7
Growth- YoY (%)
17
8
9
17
27
22
Exhibit 2: EBIDTA margin improvement; cable margins
improvement driven by favorable commodity price on
inventory and product shift toward domestic cables
EBITDA (INR m)
EBITDA Margin (%)
13
-2 -2
Source: Company, MOSL
Source: Company, MOSL
Exhibit 3:
Segmental performance (INR m)
Y/E March
Sales
Switchgear
Cables & Wires
Consumer Durable
Lighting & Fixtures
Others
Lloyd
% YoY
Switchgear
Cables & Wires
Consumer Durable
Lighting & Fixtures
Profit Contribution
Switchgear
Cables & Wires
Consumer Durable
Lighting & Fixtures
Others
Lloyd
Contribution Margin (%)
Switchgear
Cables & Wires
Consumer Durable
Lighting & Fixtures
Others
Lloyd
FY16
3Q
4Q
3,401
6,785
3,092
2,406
1Q
3,529
5,330
3,514
1,962
334
FY17
2Q
3,474
5,592
3,085
2,371
-
-
0
(11)
21
15
1,445
793
821
631
-
3Q
3,459
6,829
3,436
2,248
248
4Q
3,913
7,601
3,970
2,399
432
FY18
1Q
3,557
7,196
3,676
2,176
545
2,672
(3)
19
2
5
1,441
875
951
635
96
394
36.8
11.5
24.0
26.5
22.1
15
2Q
3,299
5,693
3,216
2,868
-
2,698
(5)
2
4
21
1,363
1,133
894
775
-
527
41.3
19.9
27.8
27.0
-
19.5
3,402
5,817
2,888
2,209
3.9
17.5
25.1
13.9
1,302
732
727
543
11.3
19.2
7.8
28.0
1,269
884
852
559
20.2
4.9
21.1
22.1
1,435
719
913
513
79
1.7
17.4
19.0
1.7
1,291
869
809
641
55
15.1
12.0
28.4
-0.3
1,441
875
951
635
96
38.3
12.6
25.2
24.6
37.3
13.0
27.6
23.3
40.7
13.5
26.0
26.2
23.7
42
14
27
27
-
-
37.3
12.7
23.6
28.5
22.1
36.8
11.5
24.0
26.5
22.1
Source: MOSL, Company
23 October 2017
3

Havells India
Exhibit 4: Brief Financial snapshot of Havells and Lloyd’s Half yearly performance
Net Revenue
Contribution
Contribution Margin
Ad and sales promotion
as a % to sales
EBIDTA
as a % to sales
Profit before tax
Tax
Net profit
Havells
1HFY17
1HFY18
2,9190
31,009
7,348
7,912
25.2
25.5
971
896
3.3
2.9
4,038
3,976
13.8
12.8
4,053
3,864
1,139
1,136
2,914
2,728
Change
YoY (%)
6
Lloyd
consolidated
1HFY18
1HFY18
5,370
36,379
921
8,833
17.2
24.3
348
1,244
6.5
3.4
317
4,293
5.9
11.8
278
4,143
82
1,218
72
2,924
Source: Company, MOSL
-8
-2.0
-100bp
-5.0
-6.0
Concall highlights
Restocking slower than expected in 2QFY18 – festive season sales subdued
GST disruption continues and more so in electrical products, where GST rate has
gone to 28% from 18% (Excise+VAT in most states) - trade is delaying restocking;
if rates not reduced, could see unorganized take share.
Restocking has not been to the required levels - trade has become more
efficient and will stock less, more so given the current market conditions.
2HFY18 to be better, but restocking will not go back to normal level.
Construction and industrial end-markets are seeing weak demand, as reflected
in weak sales growth for Havells despite restocking which started in 2QFY18.
Difficult to say when switchgear and cables will resume growth as they are
highly dependent on housing sales; lighting growing on LED switch from CFL;
ECD driven more by replacement than new demand.
Targeting double-digit growth for FY18
Dependent on improvement in the industry conditions. During 2QFY18, 4%
growth in core Havells (ex lloyd) and 7% including sales from earlier exempted
zones. Lloyd saw 11% sales growth.
Festive uptick has not been as expected - consumers and channel are still
cautious.
Margin improvement driven by price hikes in cables/wires and withdrawal of
dealer schemes
During Q218, have been able to pass on
all higher RM costs and GST-related tax
changes to end-consumer;
price hikes only in wires/cables on higher copper
prices.
Old copper inventory in cables, decline in ad costs, and gain on sale of tax-free
bonds helped improve margins for the company during 2QFY18.
Margins were hit since demonetization on dealer schemes and then by higher
commodity levels - are coming back to normal levels which are ~13.5-14% in
the near quarters.
Wires price hiked by 12-13% and cable price by 5-6%; other segment margin
improvement is primarily on roll back of dealer incentive/schemes.
Ad spends will revert back to 3-3.5% of sales from 3QFY18.
23 October 2017
4

Havells India
Lloyd Electricals – 11% growth in 2Q18; yet to take any price hikes
Lloyd grew 11% in 2QFY18 and margins were at 7% - controlled costs helped to
increase margins in 2QFY18.
No price increases taken - implemented singular price across dealers.
70% of total sales to be aircon and balance primarily for TV and then WM.
Cables and wires – price hikes offset volume decline; margins surge on old copper
inventory and higher share of wires
Higher margins in this segment on a) sale of old inventory of copper and b)
positive product mix of domestic cables, which have higher margins - 54% in
2QFY18 v/s 50% in 2QFY17.
Input costs higher, so have
taken a few price increases in 3QFY18 as well -
commodity markets are still very volatile.
5% YoY volume decline in wires and 12-14% YoY in cables, while wire price hiked
by 12-13% and cables by 5-6%.
Valuation and view: Maintain Neutral with revised target price of INR570
We raise our earnings estimate for FY18/19 by 5% each to factor in better-than-
estimated operating margins driven by cost-control measures. We maintain our
Neutral
rating and raise our target price to INR570, as we roll over our exit multiple
to Dec-19E EPS of INR16.5.
Exhibit 5: Estimate change
Description
Sales
EBITDA
Margin (%)
PAT
New estimates
FY17
FY18
FY19
61,353
83,240
100,407
8,241
10,675
13,573
13.4%
12.8%
13.5%
5,969
7,192
8,908
Old estimates
FY18
FY19
83,300
101,000
10,194
13,058
12.2%
12.9%
6,830
8,603
Change in estimates
FY18
FY19
0%
-1%
5%
4%
0.6%
0.6%
5%
4%
Source: MOSL, Company
23 October 2017
5

Havells India
Operating metrics
INR M
Havells Standalone
Revenues
Swtichgear
Cables and wire
Electrical Consumer Durables
Lighting and Fixtures
Others
Consumer Durables
Total
Revenue Growth (% YoY)
Swtichgear
Cables and wire
Electrical Consumer Durables
Lighting and Fixtures
Consumer Durables
Total
EBIT Margin (%)
Swtichgear
Cables and wire
Consumer Durables
Lighting and Fixtures
Consumer Durables
Standalone EBIT (%)
Consolidated EPS (INR/sh)
Standalone
Sylvania
Total
FY12
FY13
FY14
FY15
FY16
FY17
FY18E
FY19E
FY20E
8,962
15,930
5,721
5,544
-
36,156
10,781
16,925
7,893
6,652
-
42,250
12,192
19,264
8,534
7,207
-
47,197
12,790
21,904
10,283
7,410
-
52,387
13,346
24,595
11,436
8,377
-
57,754
14,677
26,756
14,199
8,945
1,283
65,860
14,383
29,432
14,909
10,734
-
15,000
84,457
15,822
33,846
17,145
12,344
-
21,250
100,407
17,404
38,923
19,717
14,195
-
24,438
114,677
22.0
29.3
21.9
24.7
25.5
20.3
6.2
38.0
20.0
16.9
13.1
13.8
8.1
8.3
11.7
4.9
13.7
20.5
2.8
11.0
4.3
12.3
11.2
13.1
10.2
10.0
8.8
24.2
6.8
14.0
-2.0
10.0
5.0
20.0
0.0
28.2
10.0
15.0
15.0
15.0
15.0
18.9
10.0
15.0
15.0
15.0
15.0
14.2
36.1
7.9
28.1
23.8
11.5
33.9
9.1
25.1
23.6
11.5
36.5
11.0
27.0
24.8
13.1
36.5
12.1
25.1
26.6
12.5
37.5
12.6
25.0
22.8
13.4
38.2
12.2
24.6
26.4
13.7
40.0
15.5
25.6
27.0
18.0
12.3
41.0
15.0
26.5
27.0
19.0
12.9
41.0
15.0
26.0
27.0
19.0
13.3
5.1
1.8
6.8
6.0
0.9
6.9
8.2
0.5
8.7
7.7
0.5
8.3
8.2
0.0
8.2
9.6
0.0
9.6
11.5
0.0
11.5
14.3
0.0
14.3
16.8
0.0
16.8
23 October 2017
6

Havells India
Financials and valuations
Income Statement (Consolidated)
Y/E March
Net Sales
Change (%)
Raw Materials
Staff Cost
Other Expenses
EBITDA
% of Net Sales
Depreciation
Amortization
Interest
Other Income
PBT
Tax
Rate (%)
Extra-ordinary Inc.(net)
Reported PAT
Change (%)
Adjusted PAT
Change (%)
2013
72,478
11.2
41,628
9,054
15,051
6,745
9.3
1,097
1,232
279
4,695
824
17.5
1,944
5,816
57.2
4,290
0.9
2014
81,858
12.9
46,398
10,869
17,167
7,425
9.1
1,155
741
413
5,941
1,478
24.9
0
4,463
-23.3
5,410
26.1
2015
85,694
4.7
48,292
11,875
18,316
7,211
8.4
1,387
640
504
5,689
1,836
32.3
0
3,853
-13.7
5,159
-4.6
2016
53,783
-37.2
31,735
3,708
10,791
7,549
14.0
1,049
127
694
7,066
1,970
27.9
2,024
7,120
84.8
5,096
-1.2
2017
61,353
14.1
36,485
5,004
11,623
8,241
13.4
1,196
122
1,343
8,266
2,298
27.8
(578)
5,390
-24.3
5,969
17.1
2018E
83,240
35.7
52,025
6,555
13,984
10,675
12.8
1,314
250
850
9,962
2,769
27.8
0
7,192
33.4
7,192
20.5
(INR Million)
2019E
2020E
100,407
114,677
20.6
14.2
62,754
71,673
7,211
7,932
16,868
19,266
13,573
15,806
13.5
13.8
1,398
1,481
250
800
12,726
3,818
30.0
0
8,908
23.9
8,908
23.9
250
900
14,975
4,492
30.0
0
10,482
17.7
10,482
17.7
Balance Sheet (Consolidated)
Y/E March
Share Capital
Reserves
Net Worth
Loans
Deffered Tax Liability
Capital Employed
Gross Fixed Assets
Less: Depreciation
Net Fixed Assets
Capital WIP
Goodwill
Curr. Assets
Inventory
Debtors
Cash & Bank Balance
Loans & Advances
Current Liab. & Prov.
Creditors
Other Liabilities
Provisions
Net Current Assets
Application of Funds
2013
624
13,797
14,420
9,785
480
25,102
30,054
18,503
11,551
249
3,694
29,468
13,184
8,623
4,736
2,052
19,860
9,026
8,761
2,073
9,608
25,102
2014
624
16,036
16,660
10,506
517
27,687
32,075
20,451
11,624
444
4,380
36,929
14,934
10,005
8,819
2,114
25,690
9,988
12,684
3,018
11,239
27,687
2015
622
17,557
18,180
4,191
434
22,808
30,298
18,469
11,829
383
3,581
32,519
13,663
6,232
7,775
1,723
25,504
8,338
13,645
3,521
7,015
22,808
2016
625
28,912
29,537
444
863
30,844
13,080
1,200
11,881
205
0
24,077
7,844
1,576
13,652
0
10,047
4,363
4,062
1,621
14,031
30,843
2017
625
32,111
32,736
1,981
1,138
35,854
15,012
2,355
12,658
119
0
32,797
9,284
2,285
19,375
0
13,746
6,296
5,685
1,766
19,051
35,854
2018E
625
36,222
36,847
1,000
1,138
38,985
16,012
3,669
12,344
0
14,970
28,320
13,737
3,100
9,709
0
16,649
8,542
6,253
1,854
11,671
38,985
(INR Million)
2019E
625
41,314
41,939
1,000
1,138
44,076
17,012
5,066
11,946
0
14,970
36,289
16,570
3,740
14,117
0
19,128
10,303
6,878
1,947
17,161
44,076
2020E
625
47,306
47,931
500
1,138
49,568
18,012
6,548
11,464
0
14,970
44,511
18,925
4,271
19,360
0
21,378
11,767
7,566
2,044
23,134
49,568
23 October 2017
7

Havells India
Financials and valuations
Ratios
Y/E March
Basic (INR)
Adjusted EPS
Growth (%)
Cash EPS
Book Value
DPS
Payout (incl. Div. Tax.)
Valuation (x)
P/Sales
P/E (standalone)
P/E (consolidated)
Cash P/E
EV/EBITDA
EV/Sales
Price/Book Value
Dividend Yield (%)
Profitability Ratios (%)
RoE
RoCE
RoIC
Turnover Ratios
Debtors (Days)
Inventory (Days)
Creditors. (Days)
Asset Turnover (x)
Leverage Ratio
Debt/Equity (x)
2013
9.3
6.9
0.9
8.6
23.1
1.5
28.3
4.7
78.8
78.8
62.8
11.8
1.1
23.4
0.3
29.7
21.9
28.3
43
66
45
2.9
0.7
2014
7.2
8.7
26.1
10.5
26.7
3.0
49.1
4.1
62.5
62.5
51.5
12.4
1.1
20.3
0.6
32.5
19.2
33.2
45
67
45
3.0
0.6
2015
6.2
8.3
-4.7
10.5
29.1
2.9
57.6
3.9
65.6
65.6
51.7
21.6
1.8
18.6
0.5
28.4
17.0
38.8
27
58
36
3.8
0.2
2016
11.4
8.2
-1.2
9.8
47.3
4.0
88.5
6.3
66.4
66.4
55.1
42.5
6.0
11.5
0.7
17.3
19.3
52.1
11
53
30
1.7
0.0
2017
8.6
9.6
17.1
11.5
52.4
3.5
42.8
5.5
56.7
56.7
47.2
38.5
5.2
10.3
0.6
18.2
18.2
56.6
14
55
37
1.7
0.1
2018E
11.5
11.5
20.5
13.6
59.0
4.2
42.8
4.1
47.1
47.1
39.8
30.9
4.0
9.2
0.8
19.5
19.7
32.0
14
60
37
2.1
0.0
2019E
14.3
14.3
23.9
16.5
67.2
5.2
42.8
1.7
38.0
38.0
32.8
24.0
3.2
8.1
1.0
21.2
21.9
40.6
14
60
37
2.3
0.0
2020E
16.8
16.8
17.7
19.2
76.8
6.1
42.8
1.5
32.3
32.3
28.3
20.2
2.8
7.1
1.1
21.9
22.8
47.4
14
60
37
2.3
0.0
Cash Flow Statement
Y/E March
PBT before EO Items
Add : Depreciation
Interest
Less : Direct Taxes Paid
(Inc)/Dec in WC
CF from Operations
EO Income
CF from Oper. incl. EO Items
(Inc)/Dec in FA
Free Cash Flow
(Pur)/Sale of Investments
CF from Investments
(Inc)/Dec in Net Worth
(Inc)/Dec in Debt
Less : Interest Paid
Dividend Paid
CF from Fin. Activity
Inc/Dec of Cash
Add: Beginning Balance
Closing Balance
2013
4,695
1,097
1,644
824
-1,868
4,744
1,944
6,688
-1,950
4,738
0
-2,020
67
-10
1,232
1,095
-2,270
2,399
2,336
4,735
2014
5,941
1,155
741
1,891
2,453
8,399
0
8,399
-1,424
6,975
0
-2,109
3
722
741
2,190
-2,206
4,084
4,736
8,820
2015
5,689
1,387
639
1,836
3,180
9,058
0
9,058
-1,531
7,528
0
-732
-198
-6,315
640
2,219
-9,372
-1,045
8,819
7,774
2016
7,066
1,045
127
1,970
-1,138
5,131
2,024
7,155
-922
6,233
-4,727
-2,069
9,177
-3,747
127
4,511
791
5,878
7,775
13,652
2017
8,266
1,196
122
2,298
865
8,151
-578
7,573
-2,049
5,524
701
-1,348
640
1,537
122
2,557
-502
5,723
13,652
19,375
2018E
9,962
1,314
250
2,769
-2,449
6,307
0
6,307
-718
5,589
4,026
-11,662
0
-981
250
3,081
-4,312
-9,667
19,375
9,708
2019E
12,726
1,398
250
3,818
-1,081
9,474
0
9,474
-1,000
8,474
0
-1,000
0
0
250
3,816
-4,066
4,408
9,709
14,117
(INR Million)
2017E
14,975
1,481
250
4,492
-730
11,484
0
11,484
-1,000
10,484
0
-1,000
0
-500
250
4,491
-5,241
5,243
14,117
19,360
23 October 2017
8

Havells India
Corporate profile
Company description
Havells India is one of the largest electrical
companies in India, and also has a presence in
Europe / LatAm in lighting business through
Sylvania. It owns some of the prestigious global
brands like Crabtree, Sylvania, Concord, Luminance,
Linolite, & SLI Lighting.
Exhibit 1: Sensex rebased
Source: MOSL/Bloomberg
Exhibit 2: Shareholding pattern (%)
Sep-17
Promoter
DII
FII
Others
61.6
3.5
25.7
9.3
Jun-17
61.6
3.2
26.3
8.9
Sep-16
61.6
2.9
26.7
8.8
Source: Capitaline
Exhibit 3: Top holders
Holder Name
Nalanda India Equity Fund Limited
Government Pension Fund Global
Smallcap World Fund, Inc
New World Fund Inc
% Holding
5.3
2.8
1.5
1.3
Source: Capitaline
Note: FII Includes depository receipts
Exhibit 4: Top management
Name
Anil Rai Gupta
Puneet Bhatia
Surjit Gupta
T V Mohandas Pai
Rajesh Gupta
Designation
Chairman & Managing Director
Director
Director
Director
Director (Finance)
Exhibit 5: Directors
Name
Adarsh Kishore
Pratima Ram
S K Tuteja
Name
Vijay Kumar Chopra
Ameet Kumar Gupta
JALAJ ASHWIN DANI
Source: Capitaline
*Independent
Exhibit 7: MOSL forecast v/s consensus
Exhibit 6: Auditors
Name
MZ & Associates
S R Batliboi & Co LLP
Sanjay Gupta & Associates
Type
Secretarial Audit
Statutory
Cost Auditor
EPS
(INR)
FY18
MOSL
forecast
11.5
14.3
16.8
Consensus
forecast
10.7
13.2
16.0
Variation
(%)
7.3
8.3
4.9
Source: Bloomberg
FY19
FY20
Source: Capitaline
23 October 2017
9

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Havells India
Disclosure of Interest Statement
Analyst ownership of the stock
Havells India
No
A graph of daily closing prices of securities is available at
www.nseindia.com, www.bseindia.com.
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Registered Office Address: Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai-400025; Tel No.: 022-3980 4263; www.motilaloswal.com. Correspondence Address: Palm Spring
Centre, 2nd Floor, Palm Court Complex, New Link Road, Malad (West), Mumbai- 400 064. Tel No: 022 3080 1000. Compliance Officer: Neeraj Agarwal, Email Id:
na@motilaloswal.com,
Contact No.:022-30801085.
Registration details of group entities.: MOSL: NSE (Cash): INB231041238; NSE (F&O): INF231041238; NSE (CD): INE231041238; BSE (Cash): INB011041257; BSE(F&O): INF011041257; BSE(CD); MSE(Cash): INB261041231;
MSE(F&O): INF261041231; MSE(CD): INE261041231; CDSL: IN-DP-16-2015; NSDL: IN-DP-NSDL-152-2000; Research Analyst: INH000000412. AMFI: ARN 17397. Investment Adviser: INA000007100. Motilal Oswal Asset
Management Company Ltd. (MOAMC): PMS (Registration No.: INP000000670) offers PMS and Mutual Funds products. Motilal Oswal Wealth Management Ltd. (MOWML): PMS (Registration No.: INP000004409) offers wealth
management solutions. *Motilal Oswal Securities Ltd. is a distributor of Mutual Funds, PMS, Fixed Deposit, Bond, NCDs, Insurance and IPO products. * Motilal Oswal Commodities Broker Pvt. Ltd. offers Commodities
Products. * Motilal Oswal Real Estate Investment Advisors II Pvt. Ltd. offers Real Estate products. * Motilal Oswal Private Equity Investment Advisors Pvt. Ltd. offers Private Equity products
23 October 2017
10