Havells India is not completely out of the woods yet; demand prospects blurry
SummaryPerformance of the summer season, particularly May and June, remains uncertain as Q4 sales fell short of expectations due to unseasonal rains. This had an impact on air-conditioner sales and led to a higher channel inventory in Lloyd at the end of March.
Challenges for Havells India Ltd continued into the March quarter (Q4FY23), with sluggish B2C demand accounting for 70% of the sales mix in Q4. Although infrastructure and construction activities drove steady B2B demand, softer demand trends are expected to persist into Q1 due to rising interest rates and elevated inflation levels weighing on consumer spending.