MIRA INFORM REPORT
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Report No. : |
341974 |
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Report Date : |
21.09.2015 |
IDENTIFICATION DETAILS
|
Name : |
HAVELLS INDIA LIMITED |
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Registered
Office : |
1, Raj Narain Marg, Civil Lines, Delhi - 110054 |
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Tel. No.: |
91-120-4771100 |
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Country : |
India |
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Financials (as
on) : |
31.03.2015 |
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Date of
Incorporation : |
08.08.1983 |
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Com. Reg. No.: |
55-016304 |
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Capital
Investment / Paid-up Capital : |
Rs. 624.400
Million |
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CIN No.: [Company Identification
No.] |
L31900DL1983PLC016304 |
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IEC No.: |
0588160385 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
Not Available |
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PAN No.: [Permanent Account No.] |
AAACH0351E |
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Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
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Line of Business
: |
Manufacturer of Electrical and Power Distribution Equipment with products ranging from Industrial and Domestic Circuit Protection Switchgears, Cables, Motors, Pumps, Fans, Power Capacitors, CFL Lamps and Luminaries. |
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No. of Employees
: |
4013 (Approximately) |
RATING & COMMENTS
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MIRA’s Rating : |
Aa (78) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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Maximum Credit Limit : |
USD 67880000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is one of the leading players in consumer electrical products
sector in India. Subject operates in four broad business segments, viz. switchgears,
cables and wires, electrical consumer durables and lighting and fixtures. For the financial year ended 2015, company has registered 10% growth
in its revenue profile and it has maintained decent profitability margins at
8.95%. Rating reflects company’s established market position in switchgear
industry backed by strong brand name and diversified product portfolio and
wide spared distribution networks. Rating also reflects strong financial risk profile marked by decent
net worth base and healthy solvency as well as liquidity profile of the
company. Trade relations are reported as fair. Payments are reported to be
regular and as per commitment. In view of strong brand name along with healthy operational base, the company
regarded as promising business partner for medium to long term business
dealings. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – March 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
CARE |
|
Rating |
Long term bank facilities = AA+ |
|
Rating Explanation |
High degree of safety and very low credit risk. |
|
Date |
April 24, 2015 |
|
Rating Agency Name |
CARE |
|
Rating |
Short term bank facilities = A1+ |
|
Rating Explanation |
Very strong degree of safety and carry lowest credit risk. |
|
Date |
April 24, 2015 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2015.
INFORMATION DECLINED
MANAGEMENT NON-COOPERATIVE
(CONTACT NO.: 91-120-3331000)
LOCATIONS
|
Registered Office : |
1, Raj Narain Marg, Civil Lines, Delhi – 110054, India |
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Tel. No.: |
Not Available |
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Fax No.: |
Not Available |
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E-Mail : |
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Website : |
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Corporate Office/ Factory 1 : |
QRG Towers, 2D, Sector -126, Expressway, Noida - 201304, Uttar
Pradesh, India |
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Tel. No.: |
91-120-4771100 |
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Fax No.: |
91-120-4772000 |
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E-Mail : |
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Factory 2 : |
Domestic Switchgears Village Dharampur, Sai Road, Baddi, District Solan - 173205, Himachal Pradesh, India |
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Factory 3 : |
Domestic Switchgears Plot No. 2 and 2A, Sector - 12, SIDCUL Industrial Area, Haridwar,
Uttarakhand, India |
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Factory 4 : |
Industrial Switchgear 14/3, Mathura Road, Faridabad, Haryana, India |
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Factory 5 : |
Industrial Switchgear and Capacitors Plot No.6, Site - IV, Sahibabad Industrial Area, Sahibabad, Uttar
Pradesh, India |
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Factory 6 : |
PCB Assembly Line E-1, Sector-59, Noida – 201307, Uttar Pradesh, India |
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Factory 7 : |
Motor and Pumps and Lighting and Fixture Division SP-181-189 and 191(A), Industrial Area, Phase II, Neemrana, Alwar,
Rajasthan, India |
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Factory 8 : |
Cable Division A/461-462, and SP-215, 204
and 204(A)
Matsya Industrial Area, Alwar, Rajasthan, India |
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Factory 9 : |
Electrical Consumer Durable – Fan Division Plot No. 2A, Sector - 10, SIDCUL Industrial Area, Haridwar,
Uttarakhand, India |
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Branch Offices : |
Located at: · Visakhapatnam · Vijaywada ·
Secunderabad |
DIRECTORS
AS ON 31.03.2015
|
Name : |
Mr. Anil Rai Gupta |
|
Designation : |
Chairman and Managing Director |
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Date of Birth/Age : |
20.04.1969 |
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Qualification : |
BA (Eco), MBA (Marketing and Finance) from Wake Forest University, North Carolina, USA |
|
Expertise : |
New business development by forming new alliances with foreign collaborators and/ or taking over other businesses within India. Supervising marketing and sales functions of Havells India Limited. |
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Experience : |
22 Years |
|
Other Directorship : |
· Havells India Limited · QRG Enterprises Limited · QRG Corporate Services Limited · QRG Central Hospital and Research Centre Limited · QRG Medicare Limited · Janalakshmi Financial Services Private Limited · Ajanta Mercantile Limited · Sylvania India Limited · Sylvania Lighting International B.V., Netherlands · Flowil International Lighting (Holding) B.V., Netherlands · Havells Netherlands B.V., Netherlands · Havells Netherlands Holding B.V., Netherlands · Havells Malta Limited, Malta · Havells Holdings Limited, Isle of Man · SLI Europe B.V., Netherlands |
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Name : |
Mr. Surjit Gupta |
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Designation : |
Non-Independent and Non-Executive Director |
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Name : |
Mr. Rajesh Gupta |
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Designation : |
Whole-time Director (Finance) and Group CFO |
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Date of Birth/Age : |
17.06.1957 |
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Qualification : |
Chartered Accountant |
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Expertise : |
Shri Rajesh Gupta is a Chartered Accountant having rich experience in Finance and allied fields. He is serving the Company for more than 35 years. |
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Experience : |
33 Years |
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Other Directorship : |
Havells India Limited |
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|
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Name : |
Dr. Adarsh Kishore |
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Designation : |
Independent Director |
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|
|
Name : |
Mr. S. B. Mathur |
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Designation : |
Independent Director |
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Name : |
Mr. Puneet Bhatia |
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Designation : |
Non-Independent and Non-Executive Director |
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Date of Birth/Age : |
16.12.1966 |
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Qualification : |
B.Com Honors, SRCC, M.B.A., IIM, Calcutta. |
|
Expertise : |
Mr. Puneet Bhatia is MD and Country Head – India for TPG Asia. Prior to joining TPG Asia in April 2002, he was Chief Executive, Private Equity Group for GE Capital India, where he was responsible for conceptualizing and creating its direct and strategic private equity investment group. He was also with ICICI Ltd. from 1990 to 1995 in the Project and Corporate Finance group and thereafter worked as Senior Analyst with Crosby Securities from 1995 to 1996 covering the automobiles and consumer sectors. |
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Other Directorship : |
· Havells India Limited · TPG Capital India Private Limited · Shriram Transport Finance Company Limited · Flare Estate Private Limited · TPG Wholesale Private Limited · Shriram City Union Finance Limited · Shriram Properties Private Limited · Shriram Capital Limited · Janalakshmi Financial Services Private Limited · Vishal E-Commerce Private Limited · Manipal Health Enterprises Private Limited |
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|
Name : |
Mr. Ameet Kumar Gupta |
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Designation : |
Whole-time Director |
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Date of Birth/Age : |
16.01.1972 |
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Qualification : |
BE (Electronics and Communication) DU, MBA (Marketing and Finance) from Wake Forest University, North Carolina, USA |
|
Expertise : |
Mr. Ameet Kumar Gupta has been working with the QRG group for about 2 decades and actively involved in new business development activities along with Mr. Anil Rai Gupta. In addition, he has been accredited with new product introduction and development and also for setting up new plants and manufacturing facilities for the QRG group. His functions include spearheading new projects being under taken by the organisation. |
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Experience : |
20 Years |
|
Other Directorship : |
· Havells India Limited · QRG Enterprises Limited · QRG Corporate Services Limited · QRG Central Hospital and Research Centre Limited · QRG Medicare Limited · Ajanta Mercantile Limited · Sylvania India Limited · Sylvania Lighting International B.V., Netherlands · Flowil International Lighting (Holding) B.V., Netherlands · Havells Malta Limited, Malta · SLI Europe B.V., Netherlands · Havells Holdings Limited, Isle of Man |
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Name : |
Mr. A. P. Gandhi |
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Designation : |
Independent Director |
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Name : |
Mr. V. K. Chopra |
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Designation : |
Independent Director |
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Name : |
Mr. S. K. Tuteja |
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Designation : |
Independent Director |
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Name : |
Mrs. Pratima Ram |
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Designation : |
Independent Director |
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Date of Birth/Age : |
29.08.1950 |
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Qualification : |
University of Virginia, USA and Bangalore University |
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Expertise : |
Mrs. Pratima Ram is an experienced banker with 3 decades of service in Corporate, International and Investment Banking. She has worked in India, USA and South Africa. She held the position of Chief General Manager and Country Head of US operations of SBI and prior to this she was the CEO of South African operations of the Bank. At SBI Capital Markets, she led the Corporate Advisory, M&A, and project Appraisal businesses. She is currently the Advisor to India Infoline Finance Limited, a Non-Banking Finance Company focused on lending to small businesses, Real Estate and Health care sectors. She has held Board position in SBI California Lloyd, USA and India Infoline Finance Limited, Mumbai. |
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Other Directorship : |
· Havells India Limited · Nandan Denim Limited · Deccan Gold Mines Limited · Suzlon Energy Limited · SE Forge Limited · Cura Healthcare Private Limited |
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Name : |
Mr. T. V. Mohandas Pai |
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Designation : |
Non-Independent and Non-Executive Director |
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Date of Birth/Age : |
05.11.1958 |
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Qualification : |
FCA, LLB, B.Com |
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Expertise : |
Mr. T. V. Mohandas Pai is a key player in the development of the IT services industry in India and instituted several industry-firsts in the Country. Prior to this, he was a Member of the Board at Infosys Ltd., where he also served as CFO and the lead for HR and Education & Research. He was the first to institute the broad based employee stock option plan, led the first Indian company to list in the US etc. He co-founded Aarin Capital Partners in early 2012 to fund opportunities in Health Care, Life Sciences, Education and Technology-led businesses. He also co-founded Exfinity Investment Managers in mid-2014 to launch Exfinity Technology Fund I and focused on providing capital and operational support to technology companies with an India base or focus. He is also the Chairman of SEBI Primary Markets Advisory Committee (PMAC). He was a Trustee of the International Financial Reporting Standards (“IFRS”) Foundation and a Member of the Dr. Anil Kakodkar Committee on Autonomy for the IITs and the Karnataka Knowledge Commission. He is currently a Member on the Boards of IIT, Hyderabad. Chairperson, FICCI Higher Education Committee. He was a Member of various important national committees like the Kelkar Committee, constituted by the Ministry of Finance, GoI; the Non-Resident Taxation Committee as well as the Chair of the Karnataka ICT Group 2020. He is also a keen philanthropist who helped set up the Akshaya Patra Foundation in Bangalore which today delivers a hot mid-day meal to over 1.4 million school children in 11,000 government schools across 9 states in India along with other likeminded persons. In April 2015, the President of India awarded him the Padma Shri in recognition of his efforts for the betterment of the nation in areas of Trade and Industry. |
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Other Directorship : |
· Havells India Limited · Manipal Global Education Services Private Limited · Manipal Health Enterprises Private Limited · CSIR - Tech Private Limited · MEMG International India Private Limited |
KEY EXECUTIVES
|
Name : |
Mr. Sanjay Gupta |
|
Designation : |
Company Secretary |
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|
|
|
Name : |
Mr. Rajiv Goel |
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Designation : |
President- Global (Havells Sylvania) |
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Name : |
Mr. Vivek Khanna |
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Designation : |
Sr. Vice President - Finance and IT |
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|
Name : |
Mr. Sunil Sikka |
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Designation : |
President |
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|
Name : |
Mr. Narendra Kumar Choudhary |
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Designation : |
Sr. Vice President |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.06.2015
|
Category of Shareholder |
Total No. of Shares |
As a % |
|
(A)
Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
126357380 |
20.23 |
|
|
258600540 |
41.40 |
|
|
384957920 |
61.63 |
|
|
|
|
|
Total
shareholding of Promoter and Promoter Group (A) |
384957920 |
61.63 |
|
(B)
Public Shareholding |
|
|
|
|
|
|
|
|
18261861 |
2.92 |
|
|
48748 |
0.01 |
|
|
1045000 |
0.17 |
|
|
160148232 |
25.64 |
|
|
179503841 |
28.74 |
|
|
|
|
|
|
13233565 |
2.12 |
|
|
|
|
|
|
33847356 |
5.42 |
|
|
8221224 |
1.32 |
|
|
4823874 |
0.77 |
|
|
7432 |
0.00 |
|
|
3735862 |
0.60 |
|
|
148891 |
0.02 |
|
|
931689 |
0.15 |
|
|
60126019 |
9.63 |
|
Total
Public shareholding (B) |
239629860 |
38.37 |
|
Total
(A)+(B) |
624587780 |
100.00 |
|
(C)
Shares held by Custodians and against which Depository Receipts have been
issued |
|
|
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total
(A)+(B)+(C) |
624587780 |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer of Electrical and Power Distribution Equipment with products ranging from Industrial and Domestic Circuit Protection Switchgears, Cables, Motors, Pumps, Fans, Power Capacitors, CFL Lamps and Luminaries. |
|
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Brand Names : |
· Crabtree · Sylvania · Concord · Luminance · Linotile · Standard |
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Agencies Held : |
-- |
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Exports : |
Not Divulged |
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Imports : |
Not Divulged |
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Terms : |
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Selling : |
Not Divulged |
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Purchasing : |
Not Divulged |
PRODUCTION STATUS: NOT AVAILABLE
GENERAL INFORMATION
|
Suppliers : |
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Customers : |
·
Bharti Airtel
Limited ·
Airport
Authority of India ·
Ansal ·
DLF Limited ·
Eros Group ·
ICICI
Prudential ·
Idea ·
Infosys ·
Maha Genco ·
Parsvnath |
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No. of Employees : |
4013 (Approximately) |
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Bankers : |
· Canara Bank · IDBI Bank Limited · Yes Bank Limited · Axis Bank Limited · Standard Chartered Bank · HSBC Bank Limited · HSBC Bank (Mauritius) Limited · ICICI Bank Limited ·
State Bank of India |
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Facilities : |
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Banking
Relations : |
-- |
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Auditors 1 : |
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Name : |
S. R. Batliboi and Company LLP Chartered Accountants |
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Address : |
Golf View Corporate Tower-B, Sector - 42, Sector Road, Gurgaon – 122002, Haryana, India |
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Auditors 2 : |
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Name : |
V. R. Bansal and Associates Chartered Accountants |
|
Address : |
B-11, Sector - 2, Noida – 201301, Uttar Pradesh, India |
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Memberships : |
-- |
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Collaborators : |
-- |
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Wholly owned subsidiary : |
·
Havells Holdings Limited · Havells Exim Limited |
|
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|
WOS of Havells Holdings Limited : |
Havells
Malta Limited |
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WOS of Havells Malta Limited : |
Havell's
Netherlands Holding B.V. |
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|
WOS of Havell's Netherlands Holding B.V.: |
Havell's
Netherlands B.V. |
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|
WOS of Havell's Netherlands B.V.: |
·
SLI Europe B.V. · Havells Sylvania Holdings (BVI-1) Limited |
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|
WOS of SLI Europe BV : |
·
Flowil International Lighting (Holding)
B.V. · Sylvania Lighting International B.V. |
|
|
|
|
49% held by Flowil International Lighting (Holding)
B.V. and 51% held by Thai Lighting Assets Co Limited : |
Havells
Sylvania (Thailand) Limited |
|
|
|
|
WOS of Flowil International Lighting
(Holding) B.V.: |
·
Guangzhou Havells Sylvania Enterprise
Limited ·
Havells Sylvania Asia Pacific Limited ·
Havells Sylvania Sweden A.B. ·
Havells Sylvania Finland OY ·
Havells Sylvania Norway A.S. ·
Havells Sylvania Fixtures Netherlands B.V. ·
Havells Sylvania Lighting Belgium N.V. ·
Havells Sylvania Belgium B.V.B.A. ·
Havells Sylvania Lighting France S.A.S · Havells Sylvania Europe Limited |
|
|
|
|
WOS of Havells Sylvania Lighting France SA
: |
Havells
Sylvania France S.A.S. |
|
|
|
|
WOS of Flowil International Lighting
(Holding) B.V.: |
·
Havells Sylvania Italy S.P.A. ·
Havells Sylvania Portugal Lda ·
Havells Sylvania Greece A.E.E.E. ·
Havells Sylvania Spain S.A. ·
Havells Sylvania Germany Gmbh ·
Havells Sylvania Switzerland A.G ·
Havells Sylvania Tunisia S.A.R.L. · Havells Sylvania South Africa Proprietary Limited |
|
|
|
|
WOS of Sylvania Lighting International
B.V.: |
·
Havells Sylvania Brasil Illuminacao Ltda. ·
Havells Sylvania Argentina S.A. ·
Havells Sylvania N.V. ·
Havells Mexico S.A. de C.V. ·
Havells Sylvania Export N.V ·
Havells Sylvania Iluminacion (Chile) Ltda ·
Panama Americas Trading Hub SA |
|
|
|
|
71% held by Havells Sylvania Holdings BVI-1
Limited and 29% held by Havells Sylvania Holdings BVI-2 Limited : |
Havells
Sylvania Colombia S.A. |
|
|
|
|
WOS of Havells Mexico SA de CV : |
Havells
Mexico Servicios Generales S.A.de CV |
|
|
|
|
WOS of Havells Sylvania Export N.V.: |
·
Havells Sylvania EI Salvador S.A. de C.V. ·
Havells Sylvania Guatemala S.A. ·
Havells Sylvania Costa Rica S.A. ·
Havells Sylvania Panama S.A. ·
Havells Sylvania Venezuela C.A. |
|
|
|
|
WOS of Havells Sylvania Europe Limited : |
·
Havells Sylvania UK Limited ·
Havells Sylvania Fixtures UK Limited |
|
|
|
|
WOS of Havells Sylvania Holdings BVI-1
Limited |
Havells
Sylvania Holdings (BVI-2) Limited |
|
|
|
|
83.33% held by Havells Sylvania Europe
Limited and 16.67% held by Flowil International Lighting (Holding) B.V.: |
Havells
Sylvania Dubai FZCO |
|
|
|
|
WOS of Havells Sylvania Asia Pacific
Limited : |
·
Havells Sylvania (Shanghai) Limited ·
Havells Sylvania (Malaysia) Sdn. Bhd |
|
|
|
|
WOS of Havells Sylvania Colombia S.A.: |
Havells
Sylvania Peru S. A. C. |
|
|
|
|
WOS of Havell's Netherlands B.V.: |
Havells
USA Inc. |
|
|
|
|
99% held by Flowil International Lighting
(Holding) B.V. & 1% held by Havells Sylvania Europe Limited : |
Havells
Sylvania Poland S.P.Z.O.O |
|
|
|
|
99.95% held by of Havells Sylvania Europe
Limited and 0.05 % held Havells Sylvania UK Limited : |
·
Havells Sylvania TR Elektrik Ürünleri ·
Ticaret Limited Şirketi |
|
|
|
|
49% held by Flowil International Lighting
(Holding) B.V.: |
Thai
Lighting Asset Co. Limited * |
|
|
|
|
74% held by Flowil Lighting International
(Holding) B.V. and 26% held by Havells Sylvania Thailand Limited : |
PT
Havells Sylvania Indonesia |
|
|
|
|
Joint Venture : |
Jiangsu
Havells Sylvania Lighting Co., Limited |
|
|
|
|
Enterprises in which directors exercise
significant influence : |
·
QRG Enterprises Limited ·
QRG Foundation ·
QRG Medicare Limited ·
QRG Central Hospital and Research Centre
Limited ·
QRG Corporate Services Limited ·
QRG Wellness LLP ·
Guptajee and Company ·
Ajanta Mercantile Limited ·
The Vivekananda Ashrama |
*
‘Flowil International Lighting (Holding) B.V. (WOS of Sylvania Lighting
International B.V.)’ holds 49% equity interest in ‘Thai Lighting Assets Co.
Limited’. However, the said Company has majority representation on the board of
directors of the entities and the approval of the said Company is required for
all major operational decisions and the operations are solely carried out for
the benefit of the group. Based on these facts and circumstances, management
determined that in substance the group controls this entity and therefore has
consolidated this entity in its financial statements.
CAPITAL STRUCTURE
AS ON 31.03.2015
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
1000500000 |
Equity Shares |
Re. 1/- each |
Rs. 1000.500 Million |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
624488035 |
Equity Shares |
Re. 1/- each |
Rs. 624.500
Million |
|
|
Less: Investment held by ESOP Trust 1,30,225 equity shares of Re. 1/- each |
|
Rs. 0.100
Million |
|
|
|
|
|
|
|
Total |
|
Rs. 624.400 Million |
Pursuant to recommendation of
the Board of Directors of the Company at its meeting held on 30th June, 2014
and followed by approval of the members through postal ballot on 7th August,
2014, each equity share of the face value of Rs.5/- fully paid up was
sub-divided into 5 equity shares of Re.1/- each fully paid up.
b) Reconciliation of the shares outstanding
at the beginning and at the end of the year
|
|
As at March 31, 2015 |
|
|
|
No. of shares |
Rs. in Million |
|
At
the beginning of the year |
|
|
|
12,48,20,751 equity shares
of Rs.5/- each sub-divided into 5 equity shares of Re.1/- each |
624103755 |
624.100 |
|
Add: Equity shares Issued
under ESOP / ESPP |
384280 |
0.400 |
|
Outstanding
at the end of the year |
624488035 |
624.500 |
|
Less:
Investment held by ESOP Trust |
130225 |
0.100 |
|
Total |
624357810 |
624.400 |
c) Terms/rights attached to
equity shares
The Company has only one
class of equity shares having a par value of Re.1/- per share (previous year
Rs. 5/- per share). Each holder of equity shares is entitled to one vote per
share. The Company declares and pays dividend in Indian rupees. A final
dividend of Rs.3/- per share of Re.1/- each (previous year Rs.10/- per share of
Rs. 5/-each) has been recommended by the Board subject to approval of
shareholders in the ensuing Annual General Meeting.
In the event of liquidation
of the Company, the holders of equity shares will be entitled to receive
remaining assets of the Company after distribution of all preferential amounts.
The distribution will be in proportion to the number of equity shares held by
the shareholders.
d) Details of shareholders holding more than 5% shares in the Company is
set out below (representing legal and beneficial ownership):
|
|
March 31, 2015 |
|
|
|
No. of shares Face Value of Re. 1/- |
% holding |
|
Vinod
Gupta* |
66354240 |
10.63 |
|
Qimat
Rai Gupta |
-- |
-- |
|
Surjit
Gupta |
32650800 |
5.23 |
|
QRG
Enterprises Limited |
189858880 |
30.40 |
|
Ajanta
Mercantile Limited |
68741660 |
11.01 |
|
Nalanda
India Equity Fund Limited |
33044930 |
5.29 |
*Shareholding of Vinod
Gupta includes 1,33,20,000 Equity shares of Re. 1/- each (Previous Year
26,64,000 equity shares of Rs.5/- each held by Mrs. Qimat Rai Gupta) for and behalf
of Guptajee and Company, a firm in which she is a partner and 1,35,84,000
equity shares as a legal heir which are under process of transmission.
e) Shares reserved for issue under Stock Option
90,550 Equity shares of
Re.1/- each (Previous Year 39,345 equity shares of Rs. 5/- each) are reserved
for the issue under Employees Stock Option Plan (ESOP) of the Company.
f) Aggregate number of shares issued as fully paid up pursuant to
contract without payment being received in cash or by way of bonus shares
during the period of five years immediately preceding the date of Balance
Sheet:
|
|
March 31, 2015 No. of shares Face Value of Re. 1/- |
|
Equity shares allotted as
fully paid-up pursuant to contracts for consideration other than cash |
11.095 |
|
Equity shares allotted as
fully paid up bonus shares by capitalisation of securities premium account
and general reserve |
311.937 |
|
Equity shares issued
under the Employee Stock Option Plan/ Employee Stock Purchase Plan as part consideration
for services rendered by employees |
0.233 |
FINANCIAL DATA
[all figures are
in Rupees Million]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
624.400 |
623.900 |
623.900 |
|
(b) Reserves & Surplus |
23133.500 |
20674.600 |
18078.300 |
|
(c) Money received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application
money pending allotment |
0.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
23757.900 |
21298.500 |
18702.200 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) Long-term borrowings |
417.300 |
1430.800 |
1087.800 |
|
(b) Deferred tax liabilities (Net) |
433.700 |
517.400 |
619.000 |
|
(c)
Other long term liabilities |
13.600 |
403.000 |
332.600 |
|
(d)
long-term provisions |
47.800 |
22.600 |
16.300 |
|
Total
Non-current Liabilities (3) |
912.400 |
2373.800 |
2055.700 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a)
Short term borrowings |
0.000 |
123.700 |
0.000 |
|
(b)
Trade payables |
3945.200 |
4495.200 |
3989.600 |
|
(c)
Other current liabilities |
4637.100 |
3371.900 |
2267.600 |
|
(d)
Short-term provisions |
3235.900 |
2317.900 |
1567.700 |
|
Total
Current Liabilities (4) |
11818.200 |
10308.700 |
7824.900 |
|
|
|
|
|
|
TOTAL |
36488.500 |
33981.000 |
28582.800 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a)
Fixed Assets |
|
|
|
|
(i)
Tangible assets |
9766.000 |
8970.800 |
8939.600 |
|
(ii)
Intangible Assets |
85.900 |
92.000 |
97.600 |
|
(iii)
Capital work-in-progress |
221.300 |
277.800 |
98.200 |
|
(iv) Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current
Investments |
10117.600 |
8825.200 |
7919.200 |
|
(c) Deferred tax assets
(net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan
and Advances |
467.700 |
711.600 |
585.000 |
|
(e)
Other Non-current assets |
1753.800 |
3.700 |
9.000 |
|
Total
Non-Current Assets |
22412.300 |
18881.100 |
17648.600 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a)
Current investments |
0.000 |
0.000 |
0.000 |
|
(b)
Inventories |
6897.200 |
6827.100 |
6630.300 |
|
(c)
Trade receivables |
1325.100 |
1364.900 |
1301.700 |
|
(d)
Cash and cash equivalents |
5223.400 |
6261.400 |
2465.400 |
|
(e)
Short-term loans and advances |
411.100 |
449.200 |
411.000 |
|
(f)
Other current assets |
219.400 |
197.300 |
125.800 |
|
Total
Current Assets |
14076.200 |
15099.900 |
10934.200 |
|
|
|
|
|
|
TOTAL |
36488.500 |
33981.000 |
28582.800 |
PROFIT
& LOSS ACCOUNT
|
|
PARTICULARS |
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from Operations |
52386.900 |
47196.900 |
42249.900 |
|
|
|
Other Income |
522.100 |
440.600 |
87.500 |
|
|
|
TOTAL (A) |
52909.000 |
47637.500 |
42337.400 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Materials Consumed |
27845.100 |
25462.100 |
22680.200 |
|
|
|
Purchases of Stock-in-Trade |
3992.000 |
3596.900 |
4226.600 |
|
|
|
Changes in inventories of finished goods, work-in-progress
and Stock-in-Trade |
(52.900) |
(41.900) |
(393.200) |
|
|
|
Employees benefits expense |
3127.200 |
2474.800 |
2021.700 |
|
|
|
Other expenses |
10484.300 |
9289.000 |
8366.000 |
|
|
|
TOTAL (B) |
45395.700 |
40780.900 |
36901.300 |
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
7513.300 |
6856.600 |
5436.100 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
175.700 |
269.300 |
285.500 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
7337.600 |
6587.300 |
5150.600 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
875.100 |
636.300 |
578.800 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
6462.500 |
5951.000 |
4571.800 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
1813.100 |
1164.100 |
857.900 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
4649.400 |
4786.900 |
3713.900 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
F.O.B. value of exports* *excluding export of Rs.208.100 Million made through merchant exporters (previous year Rs.135.300 Million) |
2958.300 |
3151.700 |
2072.600 |
|
|
|
Merchanting Trade Sales |
4.900 |
13.300 |
4.700 |
|
|
TOTAL EARNINGS |
2963.200 |
3165.000 |
2077.300 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw materials and components |
3428.900 |
3851.300 |
2013.300 |
|
|
|
Traded goods |
1360.900 |
1155.200 |
1740.500 |
|
|
|
Machinery and other fixed assets |
386.800 |
83.400 |
111.700 |
|
|
|
Spare parts and Consumables |
24.100 |
44.200 |
36.100 |
|
|
|
R & D Equipments |
0.600 |
0.100 |
0.500 |
|
|
TOTAL IMPORTS |
5201.300 |
5134.200 |
3902.100 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
7.45 |
7.67 |
29.76 |
|
CURRENT MATURITIES
OF LONG TERM DEBT DETAILS
|
PARTICULARS |
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
Current maturities of long-term borrowings |
417.300 |
400.700 |
0.000 |
|
|
|
|
|
|
Cash generated from/(used) in operations |
7509.100 |
7642.900 |
4739.300 |
|
|
|
|
|
|
Net Cash flow from/(used) in Operating Activities |
6004.400 |
6525.300 |
3814.400 |
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2015 |
|
Type |
1st
Quarter |
|
Net Sales |
12671.400 |
|
Total Expenditure |
11088.700 |
|
PBIDT (Excl OI) |
1582.700 |
|
Other Income |
168.200 |
|
Operating Profit |
1750.900 |
|
Interest |
30.100 |
|
Exceptional Items |
0.000 |
|
PBDT |
1720.800 |
|
Depreciation |
224.500 |
|
Profit Before Tax |
1496.300 |
|
Tax |
422.600 |
|
Provisions and contingencies |
0.000 |
|
Profit After Tax |
1073.700 |
|
Extraordinary Items |
0.000 |
|
Prior Period Expenses |
0.000 |
|
Other Adjustments |
0.000 |
|
Net Profit |
1073.700 |
KEY
RATIOS
|
PARTICULARS |
|
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
Net Profit Margin (PAT / Sales) |
(%) |
8.88 |
10.14 |
8.79 |
|
|
|
|
|
|
|
Operating Profit Margin (PBDIT/Sales) |
(%) |
14.34 |
14.53 |
12.87 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
24.71 |
23.92 |
22.23 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.27 |
0.28 |
0.24 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.04 |
0.09 |
0.06 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.19 |
1.46 |
1.40 |
Total Liability = Short-term Debt + Long-term Debt + Current Maturities
of Long-term debts
STOCK
PRICES
|
Face Value |
Re. 1.00/- |
|
|
|
|
Market Value |
Rs. 251.00/- |
FINANCIAL ANALYSIS
[all figures are
in Rupees Million]
DEBT EQUITY RATIO
|
Particulars |
31.03.2013 |
31.03.2014 |
31.03.2015 |
|
|
(Rs.
In Million) |
(Rs.
In Million) |
(Rs.
In Million) |
|
Share Capital |
623.900 |
623.900 |
624.400 |
|
Reserves & Surplus |
18078.300 |
20674.600 |
23133.500 |
|
Money received against share warrants |
0.000 |
0.000 |
0.000 |
|
Share Application money pending allotment |
0.000 |
0.000 |
0.000 |
|
Net
worth |
18702.200 |
21298.500 |
23757.900 |
|
|
|
|
|
|
Long-term borrowings |
1087.800 |
1430.800 |
417.300 |
|
Short term borrowings |
0.000 |
123.700 |
0.000 |
|
Current maturities of long-term borrowings |
0.000 |
400.700 |
417.300 |
|
Total
borrowings |
1087.800 |
1955.200 |
834.600 |
|
Debt/Equity ratio |
0.058 |
0.092 |
0.035 |
YEAR-ON-YEAR GROWTH
|
Year on Year Growth |
31.03.2013 |
31.03.2014 |
31.03.2015 |
|
|
(Rs.
In Million) |
(Rs.
In Million) |
(Rs.
In Million) |
|
Sales |
42249.900 |
47196.900 |
52386.900 |
|
|
|
11.709 |
10.996 |
NET PROFIT MARGIN
|
Net Profit Margin |
31.03.2013 |
31.03.2014 |
31.03.2015 |
|
|
(Rs.
In Million) |
(Rs.
In Million) |
(Rs.
In Million) |
|
Sales |
42249.900 |
47196.900 |
52386.900 |
|
Profit |
3713.900 |
4786.900 |
4649.400 |
|
|
8.79% |
10.14% |
8.88% |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check list by
info agents |
Available in
Report (Yes/No) |
|
1 |
Year of establishment |
Yes |
|
2 |
Constitution of the entity -Incorporation
details |
Yes |
|
3 |
Locality of the entity |
Yes |
|
4 |
Premises details |
No |
|
5 |
Buyer visit details |
-- |
|
6 |
Contact numbers |
Yes |
|
7 |
Name of the person contacted |
No |
|
8 |
Designation of contact person |
No |
|
9 |
Promoter’s background |
Yes |
|
10 |
Date of Birth of Proprietor / Partners /
Directors |
Yes |
|
11 |
Pan Card No. of Proprietor / Partners |
No |
|
12 |
Voter Id Card No. of Proprietor / Partners |
No |
|
13 |
Type of business |
Yes |
|
14 |
Line of Business |
Yes |
|
15 |
Export/import details (if applicable) |
No |
|
16 |
No. of employees |
Yes |
|
17 |
Details of sister concerns |
Yes |
|
18 |
Major suppliers |
No |
|
19 |
Major customers |
Yes |
|
20 |
Banking Details |
Yes |
|
21 |
Banking facility details |
Yes |
|
22 |
Conduct of the banking account |
-- |
|
23 |
Financials, if provided |
Yes |
|
24 |
Capital in the business |
Yes |
|
25 |
Last accounts filed at ROC, if applicable |
Yes |
|
26 |
Turnover of firm for last three years |
Yes |
|
27 |
Reasons for variation <> 20% |
-- |
|
28 |
Estimation for coming financial year |
No |
|
29 |
Profitability for last three years |
Yes |
|
30 |
Major shareholders, if available |
Yes |
|
31 |
External Agency Rating, if available |
Yes |
|
32 |
Litigations that the firm/promoter
involved in |
-- |
|
33 |
Market information |
-- |
|
34 |
Payments terms |
No |
|
35 |
Negative Reporting by Auditors in the
Annual Report |
No |
INDEX OF CHARGES
|
S.NO. |
CHARGE ID |
DATE OF CHARGE CREATION/MODIFICATION |
CHARGE AMOUNT SECURED |
CHARGE HOLDER |
ADDRESS |
SERVICE REQUEST NUMBER (SRN) |
|
1 |
10441530 |
11/07/2013 |
1,087,786,000.00 |
THE HONGKONG AND
SHANGHAI BANKING CORPORATION LIMITED |
PLOT NO 139-140B,SHIV
BUILDING, SAHAR ROAD JUNCTION, WESTERN EXPRESSWAY HIGHWAY, VILE PARLE -
EAST, |
B81260366 |
|
2 |
10420057 |
29/03/2013 |
1,087,786,000.00 |
HSBC BANK
(MAURITIUS) LIMITED |
6TH FLOOR, HSBC CENTRE,
18, CYBERCITY, EBENE, - |
B73286874 |
|
3 |
90063916 |
28/08/2012 * |
2,900,000,000.00 |
CANARA BANK |
PRIME CORPORATE
BRANCH II, 2ND FLOOR, WORLD TRADE TOWER, BARAKHAMBA LANE, NEW DELHI,
DELHI - 110001, INDIA |
B57092884 |
* Date of charge modification
UNSECURED LOANS
|
PARTICULARS |
31.03.2015 (Rs.
In Million) |
31.03.2014 (Rs.
In Million) |
|
LONG-TERM BORROWINGS |
|
|
|
Deposits Deposits from public |
0.000 |
629.500 |
|
SHORT TERM BORROWINGS |
|
|
|
Deposits from public |
0.000 |
123.700 |
|
|
|
|
|
Total |
0.000 |
753.200 |
CORPORATE INFORMATION
Subject
is a public limited Company domiciled in India and incorporated under the provisions
of the Companies Act, 1956. The Company is listed on BSE Limited and National
Stock Exchange of India Limited. The Company is electrical and power
distribution equipment manufacturer with products ranging from Industrial and
Domestic Circuit Protection Switchgears, Cables, Motors, Pumps, Fans, Power
Capacitors, CFL Lamps and Luminaries for Domestic, Commercial and Industrial
applications, Modular Switches, Water Heaters and Domestic Appliances covering
the entire range of household, commercial and industrial electrical needs. The
Company alongwith its subsidiary companies owns some of the prestigious global
brands like Crabtree, Sylvania, Concord, Luminance, Linotile and Standard. The
Company’s manufacturing facilities are located at Faridabad in Haryana, Alwar
and Neemrana in Rajasthan, Haridwar in Uttarakhand, Sahibabad and Noida in
Uttar Pradesh and Baddi in Himachal Pradesh. The research and development
facilities are located at Head office, Noida (Uttar Pradesh) and at some of the
units which have been approved by Department of Scientific and Industrial
Research, Ministry of Science and Technology, Government of India, New Delhi.
BRIEF DESCRIPTION OF THE COMPANY’S WORKING
DURING THE YEAR/ STATE OF COMPANY’S AFFAIRS
The
Company had a sales growth of 5% on a consolidated basis in the year 2014-15.
The muted growth was a result of challenging macro environment and slowdown in
consumer demand. Segments like cables grew by about 13% and switchgears segment
by 5%. Lighting and fixtures grew by mere 3% on account of lowered demand for
CFL. At the same time consumer durables segment showed an impressive growth of
20%, though on a smaller base.
The
Company is fast adopting newer technologies ensuring sustainable growth in the
future. For example, the company already has been working on fast growing LED
space. They are already equipped with the state of the art factory at Neemrana
to capitalise on the growth of this segment. Their recent acquisition of
Promptec, a Bengaluru based company in the Solar LED Street light space is
another step to strengthen their position in the growing LED market. Even the
government impetus will further help the sector and companies like ours.
Havells is fully geared to take advantage of this opportunity.
Innovation
has been at the forefront of the company’s growth strategy. This year they
launched few innovative products like Lumeno-India’s brightest LED. During the
year the company added the first Made in India MCB, Euro -2 series to the
portfolio. In the fans category, the Company pursuant to its image of being
pioneers of energy efficient fans in the country, introduced India’s most
energy efficient fan- ES40 that consumes only 40watt electricity as compared to
a normal ceiling fan that consumes anywhere between 70-80 watts. They have
already filed a patent for its unique design and aesthetics. Increasing their
focus on brand Standard, the Company re-launched the brand with new identity
and fresh look. They expect brand Standard to attain newer heights in times to
come. These measures are expected to fuel Company’s growth in the coming year.
The company also launched India’s most automated water heater plant at
Neemrana, Rajasthan. The plant is fully operational and will be able to cater
to the requirements of the coming season.
Havells
continued to invest in brand building and spent Rs.154.99 crores during
2014-15. During the year, they changed the media strategy to be able to cover
more genres of media including general entertainment channels, new channels and
print media. The Company continued to invest on Cricket and IPL and like before
launched new campaigns during IPL this year.
MANAGEMENT DISCUSSION AND ANALYSIS
INDIAN INDUSTRY OVERVIEW
Despite
a stagnant industry and constrained demand environment, optimism about the mid
and long-term growth prospects remain. Global sentiment towards the Indian
market has seen substantial improvement following the reforms initiated by the
Indian government.
Recent
government measures aimed at structural reforms in the Indian economy are in
the right direction. Further, with inflation and other financial indicators
such as fiscal deficit and current account deficit also under control, there
are positive signs of higher growth numbers in the year ahead. Positive
policies and lower global prices of various commodities have contributed to the
marked decline in inflation and the comfortable external position in the
country.
Given
the increased government focus and policy initiatives to boost the
infrastructure and construction segments, the growth rate is expected to pick
up, moving forward. The thrust on ‘Housing for All’ also augurs well for
industry growth. Overall, the Indian economy is expected to further strengthen
through higher infrastructure spending, increased fiscal devolution to states
and continued reforms in financial and monetary policy. The industrial segment,
in particular, is likely to see a demand uptick, to trigger an all-round impact
which could lead to greater revival in the sluggish consumer sentiment. The LED
lighting segment is also expected to push demand following the government
initiatives for such lighting.
GLOBAL INDUSTRY OVERVIEW
The
global economy remained sluggish in a challenging environment during the year.
Greater volatility and uncertainty marred growth prospects, with the sudden and
rapid decline in oil prices impacting economic conditions worldwide. Another
key economic factor at play during the year was the quick adjustments in
exchange rates (with appreciation of the US dollar and weakening of most other
currencies, notably the Euro). The global scenario also witnessed significant
geopolitical uncertainty as a consequence of the Russia-Ukraine and the Middle
East conflicts. There was also increased concern about the economic and
political future of the Euro Area and European Union, affecting growth
prospects in the region.
However,
the lowering of crude prices in the international market has raised optimism
about the overall growth scenario, indicating a turn for the positive in the
global economic sentiment. More significantly, the global outlook towards the
Indian sub-continent, led by India, is highly positive.
HAVELLS INDIA LIMITED (STANDALONE) SEGMENT
DISCUSSION
SWITCHGEARS
Their
extensive switchgear portfolio, manufactured at their state-of-the-art plants,
spans the complete range of products, which encompasses domestic switchgears,
switches, industrial switchgears, capacitors and motors.
Rising
urbanisation, coupled with infrastructural developments and growing electricity
consumption, has driven market growth in this segment, which has seen a marked
shift from the unorganised to the organised. They see the Switchgear market
charting favourable growth trends in the coming years, pushed by government
focus on increasing the installed power generation capacity. The government’s
‘Housing for All’ and ‘Smart Cities’ concept are further expected to boost
growth, with the planned smart cities contributing to pick-up in
infrastructural and construction activity in the country.
In
line with its consumer-centric focus, Havells continued to aesthetically
upgrade its products in this segment. Their distribution boards now have a
place of pride at the entrance of the home. Their Metallica board is a
designer’s delight, while their switches are a perfect blend of research and
innovation, marking a clear differential in terms of design, operational
efficiency and aesthetic appearance. With the market trend shifting towards
advanced modular switches, they shall continue to innovate in this product
category. The Switchgears division registered net revenue of Rs.12790.000
Million during FY 2014-15 as compared to Rs.12192.000 Million during FY
2013-14, showing a growth of 5% with contribution margins in this segment at
34.3%.
CABLE
The
Cable segment, comprising industrial and domestic cables, contributes 42% of
the Company’s revenue.
Despite
declining copper prices, the segment was able to focus on improving
contribution margins as a result of their growing brand strength, a strong
check on inventory levels and the ability to pass on any raw material
fluctuation to the market in the domestic cables business.
With
government initiatives in infrastructure development further buoying the
industry, they expect the growth trends to continue evolving amid increasing
demand for reliable and energy efficient cables. The cable industry, which has
evolved from an unorganised into an organised sector, is volume driven and
likely to get a huge thrust as infrastructure and housing sectors drive growth
with the government investing more capex in these areas.
The
Cable division registered a growth of 14% in net revenue at Rs.21904.000
Million during FY 2014-15, with contribution margins at 12.1% as compared to Rs.19264.000
Million during FY 2013-14.
LIGHTING AND FIXTURES
With
the consumer product preference in lighting and fixtures shifting towards LED,
they have aligned their product portfolio to the changing consumer preference.
Government
initiatives, aggressive marketing to create awareness and major advertisement
campaigns regarding benefits of using LED lighting, have contributed to demand
creation in this segment.
In
the lighting segment, the tremendous growth in LED is being offset by decline
in the traditional sources. Cost optimisation and technical advancement in LED
technology are pushing down LED costs in the Indian market. Keeping pace with
the market trend, they have broadened their LED lighting product portfolio to
leverage greater growth in this segment. Havells is fully geared to meet the
surge in demand in the LED segment, with its dedicated and world-class
manufacturing facilities in Noida and Neemrana. The technological shift to LED
has not been challenging for them since they already had a manufacturing
facility for fixtures. They have quickly adapted to the new technology and they
believe their early-mover advantage will come in handy in increasing the scale
of their LED business.
Going
forward, they are looking at a product mix shift geared even more towards LED,
mainly on account of the government’s efforts to promote manufacturing of LED
products in India. With increased construction activity and refurbishments, LED
fixtures are also expected to emerge as a key growth area for the Company. LEDs
are poised to replace the traditional sources of lighting and, hence, will be
at the core of their growth strategy for the lighting and fixtures segment.
The
division registered net revenue of Rs.7410.000 Million during FY 2014-15 as compared
to Rs.7207.000 Million during FY 2013-14, a growth of 3% with contribution
margin of 26.6% in the financial year 2014-15.
ELECTRICAL CONSUMER DURABLES
Havells
is continuously expanding and growing its presence in the electrical consumer
durables space, with their products gaining immense popularity in the Indian
households. With manufacturing a core strength for Havells even in this space,
they set up their own manufacturing facility at Neemrana for Water Heaters
during the year. The facility is now operational, promising greater traction
for them in this business, going forward.
Though
a late entrant in the fan category, they have been able to establish their
position in the premium category fans and launched a new range of fans during
the year. They launched several premium products in appliances, as well as air
coolers in the consumer durables category. Their Electrical Consumer Durables
are well accepted by consumers and have helped them broaden their customer
base.
The
business registered net revenue of Rs.10283.000 Million during FY 2014-15 as
compared to Rs.8534.000 Million during FY 2013-14, a healthy growth of 20%.
FINANCIAL OVERVIEW
Though
the changes are yet to manifest themselves on the ground, the positivity
visible in the macro indicators shows that the market sentiment is optimistic,
which could translate into economic recovery, going forward. They are also
continuously investing in the business to leverage the opportunities that will
surface once the on-ground growth momentum revives.
Growth
remained muted in the second half of the financial year as consumer demand
slowed down. Despite the challenging environment, however, they have been able
to deliver double digit growth, with improvement in margins witnessed across
all the business segments.
Backed
by prudent financial thinking, they have been able to build a strong balance
sheet with the least debt equity ratio and significant cash generation. They
have increased their return to their shareholders, with their dividend payout
increasingly significantly to 49% of standalone profit in FY 2014-15.
Havells
on a standalone basis registered net revenue of Rs.52390.000 Million in
financial year ended 2014-15 as compared to Rs.47200.000 Million in financial
year ended 2013-14, a growth of 11%. EBIDTA (Earnings Before Interest
Depreciation Tax and Amortisation was Rs.6990.000 Million in FY ended 2014-15
as compared to Rs.6420.000 Million in FY ended 2013-14.
UNAUDITED STANDALONE
FINANCIAL RESULTS FOR THE QUARTER ENDED JUNE 30, 2015
(RS.
IN MILLION)
|
Particulars |
Quarter Ended
30.06.2015 |
|
|
(Unaudited) |
|
Income from Operations |
|
|
Net Sales/Income from Operations |
12581.000 |
|
Other Operating Income |
90.400 |
|
Total Income from
operations (net) |
12671.400 |
|
|
|
|
Expenses |
|
|
(a) Cost of materials consumed |
7344.000 |
|
(b) Purchase of stock in trade |
642.300 |
|
(c) Changes in inventories of finished goods, work in
progress and stock in trade |
(573.900) |
|
(d) Employee benefit expenses |
879.200 |
|
(e) Depreciation and amortization expenses |
224.500 |
|
(f) Advertisement and sales promotion |
475.100 |
|
(g) Other Expenses |
2298.800 |
|
Total Expenses |
11313.200 |
|
Profit from Operations
before Other Income, Finance costs and Exceptional item |
1358.200 |
|
Other Income |
168.200 |
|
Profit/ Loss from
Ordinary Activities before Finance costs and Exceptional item |
1526.400 |
|
Finance costs |
30.100 |
|
Profit/ Loss from
Ordinary Activities after Finance costs but Exceptional item |
1496.300 |
|
Exceptional
item |
0.000 |
|
Profit/ Loss from Ordinary Activities
before tax |
1496.300 |
|
Tax Expenses |
422.600 |
|
Net Profit/ Loss from Ordinary Activities
after tax |
1073.700 |
|
Extraordinary
Items |
0.000 |
|
Net Profit for the period |
1073.700 |
|
Paid- up
Equity Share Capital (Face value of the share – Re. 1/-) |
624.600 |
|
Reserves
excluding revaluation reserves as per balance sheet of Previous Accounting
Year |
-- |
|
Earnings per share
(before extraordinary items) (of Rs. 10/- each) (not annualized) Basic and
Diluted |
1.72 |
|
Earnings per
share (after extraordinary items) (of Rs. 10/- each) (not annualized) Basic and
Diluted |
1.72 |
|
|
|
|
PARTICULARS OF SHAREHOLDING |
|
|
1. Public
shareholding |
|
|
Number of
Shares |
239629860 |
|
Percentage of Shareholding |
38.37 |
|
2. Promoters
and promoter group shareholding |
|
|
a)
Pledged/Encumbered |
|
|
- Number of Shares |
Nil |
|
- Percentage of Shares (as a % of the Total Shareholding
of promoter and promoter group) |
NA |
|
- Percentage of Shares (as a % of the Total Share Capital
of the Company) |
NA |
|
|
|
|
Non - encumbered |
|
|
- Number of
Shares |
384957920 |
|
- Percentage
of Shares (as a % of
the total shareholding of promoter and promoter group) |
100.00 |
|
- Percentage
of Shares (as a % of
the total share capital of the company) |
61.63 |
|
|
Particulars |
Quarter
Ended 30.06.2015 |
|
B |
Investor
complaints (Nos.) |
|
|
|
Pending at the beginning of the quarter |
Nil |
|
|
Received during the quarter |
2 |
|
|
Disposed of during the quarter |
2 |
|
|
Remaining unresolved at the end of the quarter |
Nil |
SEGMENT – WISE
REVENUE, RESULTS AND CAPITAL EMPLOYED
|
Sr. No. |
Particulars |
Quarter Ended
30.06.2015 |
|
|
|
|
|
1 |
Net Segment Revenue |
|
|
|
a. Switchgears |
2969.200 |
|
|
b. Cable |
5131.700 |
|
|
c. Lighting and Fixtures |
1625.300 |
|
|
d. Electrical Consumer Durables |
2945.200 |
|
|
|
|
|
|
Total |
12671.400 |
|
|
Less: Inter – segment revenue |
-- |
|
|
Total Income from operations (net) |
12671.400 |
|
|
|
|
|
2 |
Segment Results |
|
|
|
Profit/ (loss) before tax and interest |
|
|
|
a. Switchgears |
1130.700 |
|
|
b. Cable |
730.300 |
|
|
c. Lighting and Fixtures |
346.600 |
|
|
d. Electrical Consumer Durables |
731.100 |
|
|
|
|
|
|
Total |
2938.700 |
|
|
Less: |
|
|
|
Finance Costs |
30.100 |
|
|
Other un-allocable expenditure net off un-allocable
other operating income |
1412.300 |
|
|
|
|
|
|
Total Profit Before Tax |
1496.300 |
|
|
|
|
|
3 |
Capital Employed |
|
|
|
(Segment Assets – Segment Liabilities) |
|
|
|
a. Switchgears |
2679.700 |
|
|
b. Cable |
3599.000 |
|
|
c. Lighting and Fixtures |
2385.400 |
|
|
d. Electrical Consumer Durables |
2183.900 |
|
|
e. Others - Unallocable |
14024.900 |
|
|
|
|
|
|
Total |
24872.900 |
NOTES:
1)
During the quarter,
the Company has entered into a share subscription cum purchase agreement dated
April 21, 2015 to acquire 51% stake in 'Promptec Renewable Energy Solutions
Private Limited' for a consideration of Rs. 291.200 Million.
2)
a. During the
quarter, employees covered under "Havells Employees Stock Option Plan
2013" have exercised their options and accordingly 88,265 equity shares
are transferred in the name of the employees.
b.
During the quarter, employees covered under "Havells Employees Long Term
Incentive Plan 2014" have exercised their options and accordingly 99,745
equity shares are issued in the name of employees.
3)
Tax expense
includes current tax, deferred tax and is net of MAT credit if any.
4)
Figures for the
previous periods have been regrouped and reclassified to conform to the
classification of the current period, where necessary.
5)
The figures for
the quarter ended March 31, 2015 are the balancing figures between audited
figures in respect of the full financial year ended March 31, 2015 and the unaudited
published year to date figures upto December 31, 2014, being the third quarter
of the previous financial year, which were subjected to limited review.
6)
The above
financial results have been reviewed by the Audit Committee and approved by the
Board of Directors at their meeting held on July 25, 2015. The statutory
auditors of the Company have conducted limited review of these financial
results.
FIXED ASSETS:
Tangible Assets
· Industrial Land
· Buildings
· Leasehold Improvements
· Plant and Machinery
· Dies and Tools
· Furniture and Fixtures
· Vehicles
· R & D Equipments
· Office Equipments
· Electric Fans and Installations
Intangible Assets
· Computer Software
· Technical Know-how
· R & D Software
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international anti-terrorism
laws.
2] Court Declaration :
No exist to suggest that subject is or was
the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 65.93 |
|
|
1 |
Rs. 102.75 |
|
Euro |
1 |
Rs. 75.13 |
INFORMATION DETAILS
|
Information
Gathered by : |
NYA |
|
|
|
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
BVA |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
9 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
9 |
|
--MARGINS |
-5~5 |
--- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
78 |
This score serves as a reference to assess SC’s
credit risk and to set the amount of credit to be extended. It is calculated
from a composite of weighted scores obtained from each of the major sections of
this report. The assessed factors and their relative weights (as indicated
through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
-- |
NB |
New Business |
-- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.