Are Havells India latest results good or bad?

Havells India has reported its financial results for the quarter ending June 2025, which reflect a mix of operational trends. Notably, the company has achieved its highest cash and cash equivalents in the last six half-yearly periods, totaling Rs 3,378.11 crore, indicating an enhancement in short-term liquidity. Additionally, Havells India has declared a dividend per share of Rs 10.00, which is the highest distribution in the past five years, demonstrating its commitment to returning profits to shareholders.
However, the results also highlight challenges for the company. The profit before tax (PBT) for the quarter is recorded at Rs 400.57 crore, which represents a decline of 5.0% compared to the average PBT of the previous four quarters. Similarly, the profit after tax (PAT) has decreased by 5.5%, amounting to Rs 347.72 crore, suggesting a negative trend in near-term profitability.

In terms of previous quarterly performance, the quarter ending March 2025 showed a notable growth in net sales, with a quarter-on-quarter increase of 33.84% compared to the previous quarter. The consolidated net profit also saw significant growth, with an increase of 86.07% over the same period. Operating profit margins, excluding other income, reflected a positive change as well.

Overall, while Havells India has made strides in liquidity and shareholder returns, it faces challenges in profitability metrics, leading to an adjustment in its evaluation.