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Time of India
15 hours ago
- Business
- Time of India
Unseasonal rains impact up to 34% room AC makers' revenue in Jun quarter
Unseasonal rains and early monsoon arrival have impacted up to 34 per cent of the revenue of listed room-air-conditioner companies in the June quarter. Listed durable goods makers, including Voltas , Blue Star and Havells , have reported a 13-34 per cent decline in their housing room-air-conditioning (RAC) segment in the latest June quarter, creating short-term pressure on their topline and margins. Besides rains, the impact was further accentuated by an exceptionally high base in the corresponding quarter of the previous year, which had benefited the makers from a harsh and prolonged summer that drove record sales. However, some of them reported a better performance in their Commercial Air Conditioning business and expect to continue the momentum. The near-term environment remains challenging for the RAC segment, which is expected to be sized around 12.5 million units. However, companies are looking ahead to a demand revival during the upcoming festive season and expect to close FY26 with reasonable growth. "During the quarter, weather-related volatility had a significant bearing on temperature-sensitive categories, most notably the air conditioning category. The summer of 2025 arrived late and stayed mild, and ended abruptly, curtailing peak demand for air conditioners," Voltas said in its analysis of Q1 results. In the June quarter, Voltas' revenue from "unitary cooling products for comfort and commercial use", which comprises its RAC business, was down 24.57 per cent to Rs 2,867.86 crore. It was Rs 3,802.17 crore in the corresponding period of the preceding fiscal. Home-grown Havells also reported a decline of 34.4 per cent to Rs 1,261.85 crore in the revenue of its Lloyds' business in the June quarter. The revenue of Lloyds, which houses its residential air-conditioner business, was Rs 1,924.11 crore a year ago. Havells Chairman and Managing Director Anil Rai Gupta said the company has also witnessed a decline in fan and room cooler business due to intermittent rains. "So, that also saw a significant decline in sales, very similar to what we saw in the air conditioner business," he noted. Similarly, Blue Star revenue from its consumer-facing room AC business declined 13.3 per cent to Rs 1,499.37 crore in the June 2025 quarter. It was Rs 1,729.52 crore a year ago. "FY26 started on a softer note, driven primarily by unseasonal rains across the country, which resulted in a muted demand primarily for the Room Air-Conditioning segment," Blue Star said in the investors' update. According to Blue Star, the June quarter presented "unexpected headwinds" due to the early onset of monsoon across India, making this an unusually soft summer season. "The Room Air Conditioners business experienced unexpected headwinds due to the early onset of monsoon and an overall mild summer, resulting in subdued demand," it said. On the other hand, its commercial refrigeration business delivered strong growth during the quarter, driven by rising demand from the processed food and pharmaceutical sectors, reflecting a positive turnaround in key end-user industries, it said. According to Tata group firm Voltas, its trade partners had built up inventory in anticipation of strong demand, but softer secondary sales led to slower off-take and elevated stock levels, prompting a temporary adjustment in factory operations. To sustain market momentum, Voltas intensified its efforts to drive secondary sales through focused promotional activities, which placed some pressure on margins. Meanwhile, Blue Star said it will continue to invest in expanding its distribution footprint across the country and remain confident in its outlook for the rest of the year.
New Indian Express
a day ago
- Business
- New Indian Express
Unseasonal rains impact up to 34% room AC makers' revenue in June quarter
NEW DELHI: Unseasonal rains and early monsoon arrival have impacted up to 34 percent of the revenue of listed room-air-conditioner companies in the June quarter. Listed durable goods makers, including Voltas, Blue Star and Havells, have reported a 13-34 percent decline in their housing room-air-conditioning (RAC) segment in the latest June quarter, creating short-term pressure on their topline and margins. Besides rains, the impact was further accentuated by an exceptionally high base in the corresponding quarter of the previous year, which had benefited the makers from a harsh and prolonged summer that drove record sales. However, some of them reported a better performance in their Commercial Air Conditioning business and expect to continue the momentum. The near-term environment remains challenging for the RAC segment, which is expected to be sized around 12.5 million units. However, companies are looking ahead to a demand revival during the upcoming festive season and expect to close FY26 with reasonable growth. "During the quarter, weather-related volatility had a significant bearing on temperature-sensitive categories, most notably the air conditioning category. The summer of 2025 arrived late and stayed mild, and ended abruptly, curtailing peak demand for air conditioners," Voltas said in its analysis of Q1 results. In the June quarter, Voltas' revenue from "unitary cooling products for comfort and commercial use", which comprises its RAC business, was down 24.57 percent to Rs 2,867.86 crore. It was Rs 3,802.17 crore in the corresponding period of the preceding fiscal. Home-grown Havells also reported a decline of 34.4 percent to Rs 1,261.85 crore in the revenue of its Lloyds' business in the June quarter. The revenue of Lloyds, which houses its residential air-conditioner business, was Rs 1,924.11 crore a year ago. Havells Chairman and Managing Director Anil Rai Gupta said the company has also witnessed a decline in fan and room cooler business due to intermittent rains. "So, that also saw a significant decline in sales, very similar to what we saw in the air conditioner business," he noted. Similarly, Blue Star revenue from its consumer-facing room AC business declined 13.3 percent to Rs 1,499.37 crore in the June 2025 quarter. It was Rs 1,729.52 crore a year ago. "FY26 started on a softer note, driven primarily by unseasonal rains across the country, which resulted in a muted demand primarily for the Room Air-Conditioning segment," Blue Star said in the investors' update. According to Blue Star, the June quarter presented "unexpected headwinds" due to the early onset of monsoon across India, making this an unusually soft summer season. "The Room Air Conditioners business experienced unexpected headwinds due to the early onset of monsoon and an overall mild summer, resulting in subdued demand," it said. On the other hand, its commercial refrigeration business delivered strong growth during the quarter, driven by rising demand from the processed food and pharmaceutical sectors, reflecting a positive turnaround in key end-user industries, it said. According to Tata group firm Voltas, its trade partners had built up inventory in anticipation of strong demand, but softer secondary sales led to slower off-take and elevated stock levels, prompting a temporary adjustment in factory operations. To sustain market momentum, Voltas intensified its efforts to drive secondary sales through focused promotional activities, which placed some pressure on margins. Meanwhile, Blue Star said it will continue to invest in expanding its distribution footprint across the country and remain confident in its outlook for the rest of the year.
News18
a day ago
- Business
- News18
Unseasonal rains impact up to 34 pc room AC makers revenue in Jun qtr
New Delhi, Aug 10 (PTI) Unseasonal rains and early monsoon arrival have impacted up to 34 per cent of the revenue of listed room-air-conditioner companies in the June quarter. Listed durable goods makers, including Voltas, Blue Star and Havells, have reported a 13-34 per cent decline in their housing room-air-conditioning (RAC) segment in the latest June quarter, creating short-term pressure on their topline and margins. Besides rains, the impact was further accentuated by an exceptionally high base in the corresponding quarter of the previous year, which had benefited the makers from a harsh and prolonged summer that drove record sales. However, some of them reported a better performance in their Commercial Air Conditioning business and expect to continue the momentum. The near-term environment remains challenging for the RAC segment, which is expected to be sized around 12.5 million units. However, companies are looking ahead to a demand revival during the upcoming festive season and expect to close FY26 with reasonable growth. 'During the quarter, weather-related volatility had a significant bearing on temperature-sensitive categories, most notably the air conditioning category. The summer of 2025 arrived late and stayed mild, and ended abruptly, curtailing peak demand for air conditioners," Voltas said in its analysis of Q1 results. In the June quarter, Voltas' revenue from 'unitary cooling products for comfort and commercial use", which comprises its RAC business, was down 24.57 per cent to Rs 2,867.86 crore. It was Rs 3,802.17 crore in the corresponding period of the preceding fiscal. Home-grown Havells also reported a decline of 34.4 per cent to Rs 1,261.85 crore in the revenue of its Lloyds' business in the June quarter. The revenue of Lloyds, which houses its residential air-conditioner business, was Rs 1,924.11 crore a year ago. Havells Chairman and Managing Director Anil Rai Gupta said the company has also witnessed a decline in fan and room cooler business due to intermittent rains. 'So, that also saw a significant decline in sales, very similar to what we saw in the air conditioner business," he noted. Similarly, Blue Star revenue from its consumer-facing room AC business declined 13.3 per cent to Rs 1,499.37 crore in the June 2025 quarter. It was Rs 1,729.52 crore a year ago. 'FY26 started on a softer note, driven primarily by unseasonal rains across the country, which resulted in a muted demand primarily for the Room Air-Conditioning segment," Blue Star said in the investors' update. According to Blue Star, the June quarter presented 'unexpected headwinds" due to the early onset of monsoon across India, making this an unusually soft summer season. 'The Room Air Conditioners business experienced unexpected headwinds due to the early onset of monsoon and an overall mild summer, resulting in subdued demand," it said. On the other hand, its commercial refrigeration business delivered strong growth during the quarter, driven by rising demand from the processed food and pharmaceutical sectors, reflecting a positive turnaround in key end-user industries, it said. According to Tata group firm Voltas, its trade partners had built up inventory in anticipation of strong demand, but softer secondary sales led to slower off-take and elevated stock levels, prompting a temporary adjustment in factory operations. To sustain market momentum, Voltas intensified its efforts to drive secondary sales through focused promotional activities, which placed some pressure on margins. Meanwhile, Blue Star said it will continue to invest in expanding its distribution footprint across the country and remain confident in its outlook for the rest of the year. PTI KRH KRH BAL BAL (This story has not been edited by News18 staff and is published from a syndicated news agency feed - PTI) view comments First Published: August 10, 2025, 14:00 IST News agency-feeds Unseasonal rains impact up to 34 pc room AC makers revenue in Jun qtr Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Time of India
22-07-2025
- Business
- Time of India
Havells India shares in focus after Q1 profit drops 14% YoY. Should you book profits?
Shares of Havells India are expected to remain in focus on Tuesday after the company reported a 14% year-on-year (YoY) decline in standalone net profit for the first quarter ended June. The company posted a net profit of Rs 352 crore for Q1FY26, down from the same period last year, as weak summer conditions and sluggish demand impacted its cooling products segment. Explore courses from Top Institutes in Select a Course Category Healthcare Digital Marketing Artificial Intelligence CXO Project Management Data Science Data Analytics MCA MBA Cybersecurity Product Management Leadership Degree Management Design Thinking Operations Management Finance Others Public Policy Data Science others healthcare Technology PGDM Skills you'll gain: Financial Analysis in Healthcare Financial Management & Investing Strategic Management in Healthcare Process Design & Analysis Duration: 12 Weeks Indian School of Business Certificate Program in Healthcare Management Starts on Jun 13, 2024 Get Details Havells reported a 6% YoY decline in net sales to Rs 5,438 crore, attributing the performance drop to subdued sales of air-conditioners, fans, and air coolers. Chairman and Managing Director Anil Rai Gupta said during the earnings call that high channel inventory for air-conditioners will take 1–2 quarters to clear, prompting the company to adjust production levels accordingly. The large appliances business under the Lloyd brand saw sales fall 34% YoY to Rs 1,262 crore, while the lighting and fixtures segment declined marginally to Rs 374 crore. The electrical consumer durables segment also reported a 14% YoY drop in revenue to Rs 906 crore. In contrast, the switchgears business grew 9% YoY to Rs 630 crore, and the cables segment reported strong 27% YoY growth to Rs 1,933 crore, partially offsetting weakness in other verticals. Also read: Beyond 1:1 bonus issue, why HDFC Bank shares remain top pick after Q1 results Brokerage commentary post Q1 results Motilal Oswal | Neutral | Target: Rs 1,680 Motilal Oswal (MOSL) maintained a 'Neutral' rating on Havells India and reduced its target price to Rs 1,680 from Rs 1,710, citing a weaker-than-expected performance led by the Lloyd, electrical consumer durables (ECD), and lighting segments. MOSL highlighted a 6% YoY decline in revenue to Rs 5,460 crore, a 10% YoY drop in EBITDA to Rs 520 crore, and an EBITDA margin contraction of 40 basis points to 9.5%. PAT declined 15% YoY to Rs 350 crore, coming in 11% below MOSL's estimates. The brokerage attributed the weakness to soft demand caused by a muted summer, which hurt cooling product sales. However, it noted that the cables and switchgears (C&W) segment remained strong due to infrastructure and industrial demand. MOSL cut its FY26/FY27 EPS estimates by ~8% and 7%, respectively, but expects a recovery ahead. Antique Broking | Buy | Target: Rs 1,797 Antique Broking maintained its 'Buy' rating but lowered its target price to Rs 1,797 from Rs 1,859 after the Q1FY26 operational performance missed expectations. The brokerage attributed the underperformance to weakness in the Lloyd and ECD segments and revised its FY26 and FY27 earnings estimates down by 6% and 10%, respectively. On Monday, shares of Havells India closed flat at Rs 1,532.05 on BSE. ( Disclaimer : Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Time of India
21-07-2025
- Business
- Time of India
Havells Q1 standalone profit dips 14% to Rs 352 crore on weak AC sales; cables, switchgears shine
Tired of too many ads? Remove Ads Cables and air-conditioner manufacturer Havells India Ltd on Monday announced a 14% year-on-year (yoy) drop in its standalone net profit at Rs 352 crore for the first quarter ending June, with net sales taking at a hit by 6% yoy at Rs 5438 crore crore due to a weak summer which impacted sales of the company's air-conditioners, fans and company's chairman and managing director Anil Rai Gupta told analysts in its quarterly earnings call there is high channel inventory for ACs which will take 1-2 quarters to liquidate and the company is accordingly adjusting production.'The first quarter was a challenging quarter with unexpected weak summer impacting the overall performance, however we feel this is transitory and expect both revenue growth and margin improvements over ensuing quarters,' he company's large appliance business of refrigerators and air-conditioners under the Lloyd brand declined by 34% yoy to Rs 1,262 crore in the quarter under review. The lighting and fixtures business too declined marginally at Rs 374 crore in the quarter as against Rs 386 crore in the corresponding quarter previous year. The electrical consumer durables business declined by 14% yoy at Rs 906 crore in the Havells switchgears business grew by 9% yoy to Rs 630 crore and the cable business grew by 27% yoy to Rs 1,933 crore in the quarter under said the Lloyd business will improve margin with better operational efficiency and price positioning despite stiff competition. 'There is a good room to grow margins in Lloyd,' he said. The brand is amongst the top three in AC sales. He said there will be no heavy discounting to liquidate unsold AC inventory. Havells is also open to acquisition opportunities despite its large organic business portfolio.
