FINANCIAL ACCOUNTING
GROUP PROJECT REPORT

FUNDAMENTAL ANALYSIS OF HAVELLS

Submitted to:
Prof. Pooja Kumari

Submitted by:
Group-14 (Section A)

16th September 2022

Havells India Limited is a fast-moving electrical goods (FMEG) company with a strong
worldwide presence, attributable to its Make in India concept, broad distribution network, and
world-class quality. Havells is a leading manufacturer of power distribution equipment,
dominating a vast array of products including Industrial & Domestic Circuit Protection Devices,
Cables & Wires, Motors, Fans, Modular Switches, Home Appliances, Air Conditioners, Water
Heaters, Capacitors, and Commercial & Industrial Appliances.
With "Havells Exclusive Brand Stores," the firm pioneered the idea of the exclusive brand
showroom in the electrical sector. Today, more than 700 Havells Exclusive Stores around the
nation assist clients, both residential and commercial, in selecting a selection of goods for
various uses. They were the first FMEG company to provide door-to-door service with their
initiative "Havells Connect." It has the fewest client complaints and the greatest customer
happiness due to its superior product quality and prompt service.
Havells now owns some of the most prominent brands, including Lloyd, Crabtree, and Standard.
Its nationwide network consists of 4000 specialists, over 14000 leaders, and 35 branches. Their
goods are offered in sixty countries. The firm has 14 state-of-the-art manufacturing facilities in
India, situated in Haridwar, Baddi, Sahibabad, Faridabad, Alwar, Neemrana, and Giloth. These
facilities produce world renowned electrical goods that are associated with perfection and
accuracy.
Havells has a total market capitalisation of 852,99 billion INR. Siemens, ABB India, CG Power,
and Hitachi Energy are among its primary rivals. Havells comes second in terms of market value,
after Siemens, which has a market capitalisation of 109,120.59 crore INR.
Given below is the SWOT analysis of Havells:
Strengths

 Globally robust distribution network

 Significant investments in rapidly developing emerging nations.
 Excellent acquisition history
 In the top three for the majority of its items.
 Numerous items and effective advertising
 a global presence with several product categories
 First FMCG Company to provide door-to-door delivery
 High R&D expenditures have enabled the production of new goods.
 Growing year-over-year operational cash flows
Weaknesses

 High Debt Ratio

 Globally small market share
 Slowdown of real estate
 Slowdown in global markets will affect the sales adversely
Opportunities

 Acquisition of Chinese firms for low cost of manufacturing

 Vertical integration into Havells retail outlets
 Under Penetrated consumer durables market, due to increased disposable income
 Leveraging upon motor business in Unorganized India
 Infrastructure development by government is expected to raise the demand for electrical
goods.
Threats

 Market very unorganized

 Delays in execution of power projects
 Highly regulated electrical sector
 Disruption of supply chain network due to the pandemic

Impact of COVID
External obstacles, a deteriorated macroeconomic climate, and a slowdown in infrastructure had
a negative influence on demand for electrical items and consumer confidence, particularly in the
first half of the year. The Covid-19-led shutdown had a significant effect on sales in April and
May, particularly in the Fans and Air conditioners category. Despite these obstacles, Havells
succeeded well in FY2021, seeing an 11% increase in revenue to'10,428 crores. The net profit
increased to'1,040 crores from'733 crores before. EBITDA was'1,565 crores, a 52% increase
from'1,027 crores the previous year. Our EBITDA margins maintained at a record 15 percent.
The difficulty associated with inflationary tendencies in commodities and the second wave of
Covid-19 may have a short-term impact on consumer mood. We are, nonetheless, optimistic
about the medium- to long-term demand patterns. With strategic pillars in place – fortifying the
core, diversifying the portfolio, and investing in people and process competence – we anticipate
enhanced and sustainable development.
As the COVID-19-induced lockdown ended in May, ensuring the safety of plant employees
became an important responsibility. Providing a safe industrial environment and encouraging
people to return to work were essential. We established SOPs to establish operational
procedures/protocols for restarting work at the production facilities after the lockdown was
lifted, while maintaining cleanliness and physical separation. All production facilities conformed
to all SOPs targeted at avoiding and managing the spread of Covid-19 to ensure the safety of all
employees, apprentices, contract workers, and stakeholders. We monitored social distance in
certain plants using artificial intelligence. We also used video feeds of workers at work, which,
once uploaded to the cloud, alerted the Safety Officer if a worker violated social distancing
policies.
Balance Sheet – Asset Side

HAVELLS HITACHI
As at As at
As at As at As at As at
March December
March March March 31, Decembe
31, 2020 31, 2019
31, 2022 31, 2021 2022 r 31, 2020
(in cr) (Crores)
ASSETS
Non-Current Assets
Tangible Assets
PPE 2,021.45 1,860.83 1,899.59 547.21 574.54 539.71
Other tangible assets 56.75 86.26 82.77 118.33 32.36 56.69
Intangible Assets
Goodwill 310.47 310.47 310.47 31.8 31.8 31.8
Other intangible assets 1,102.15 1,122.78 1,203.45 73.53 49.49 7.94
Financial Assets
Loan 0 0 0 15.81 10.29 6.22
Investments 272.68 0 0 0 0 0
Other financial assets 44.85 23.49 21.37 0 0 0
Other non-current assets 108.30 127.97 75.16 55.93 41.28 13.38
TOTAL NON-
CURRENT ASSETS 3,916.65 3,531.80 3,592.81 842.61 739.76 655.74
Current Assets
Inventory 2,968.08 2,619.89 1,871.88 707.25 495.08 493.2
Trade Receivables 766.26 563.73 241.66 1343.81 1573.9 1782.85
Other receivables 26.55 20.11 20.01 0 0 0
Short term investments 153.42 306.30 0 0 0 0
Cash and Cash
Equivalents 775.84 354.62 267.70 85.9 318.95 188.04
Bank balance 1,772.14 1,298.17 864.83 0.04 0 0
Other current assets 144.27 157.64 194.76 544.27 375.43 320.79
TOTAL CURRENT
ASSETS 6,606.56 5,320.46 3,460.84 2681.27 2,763.3 2,784.88

TOTAL ASSETS 10,523.21 8,852.26 7,053.65 3523.88 3,503.12 3,440.62

Balance Sheet – Liability Side

EQUITY AND
LIABILITIES
Equity share capital 62.63 62.6 62.58 8.48 8.48 8.48
Other equity 5940.26 5,113.70 4,248.98 1123.91 924.04 831.34
Total Equity 6002.89 5176.3 4,311.56 1132.39 932.52 839.82
Non-Current Liabilities
Borrowing 272.57 393.65 - 0 0 0
Provisions 76.25 58.43 35.57 52.84 0 0
Other financial liabilities 182.78 102.82 90.87 3.17 0.87 1.19
Other non-current liabilities 355.61 343.68 308.55 0 27.2 4.16
TOTAL NON-CURRENT
887.21 898.58 434.99 56.01 28.07 5.35
LIABILITIES

Current Liabilities
Borrowings 122.96 98.55 0 125 0 347.62
Trade Payables 2380.02 1597.14 1413.82 1619 1577.98 1377.1
Other current financial
876.90 824.14 913.08 591.48 964.55 870.73
liabilities
TOTAL CURRENT
3633.11 2777.38 2326.9 2335.48 2542.53 2595.45
LIABILITIES

TOTAL LIABILITIES 4520.32 3675.96 2761.89 2391.49 2570.6 2600.8

Total Equities & Liabilities 10523.21 8852.26 4,311.56 3523.88 3503.12 3,440.62
Income Statement
Havells Hitachi
Year ended Year ended Year-end
Year ended Year ended Year ended
March 31, Dec Dec
March 31, March 31, March 31,
2022(15 2020(12 2019(11
2022 2021 2020
months) months) months)
INCOME
Revenue from
13,888.53 10,427.92 9,429.20 4883.96 3420.44 3236.06
operations
Total Income 13,888.53 10,427.92 9,429.20 4883.96 3420.44 3236.06
EXPENSES
Cost of raw
materials and
7,772.06 5,390.51 4,389.58 2780.09 1726.62 1530.44
components
consumed
Purchase of
1,831.48 1,615.46 1,272.82 118.24 97.69 172.26
traded goods
Change in
Inventories of
finished goods,
219.48 531.07 172.74 127.15 63.73 55.55
traded goods
and work in
progress
Subcontracting 286.5 266.81 269.48
Gross Profit 4,504.47 3,953.02 3,939.54 1826.28 1393.05 1208.33
Employee
benefits 1,014.65 885.33 899.58 486.75 369.41 255.2
expense
Other expenses 1,732.21 1,502.43 1,667.10 1028.88 772.75 617.37
PBITDA 1,757.61 1,565.26 1,372.86 310.65 250.89 335.76
Depreciation
and
260.83 248.86 217.91 95.46 77.17 48.41
amortization
expenses
PBIT(Operatin
1496.78 1316.4 1154.95 215.19 173.72 287.35
g income)
Finance costs 53.41 72.64 19.72 41.39 20.44 26.38
PBT 1,443.37 1,243.76 1,135.23 173.8 153.28 260.97
Current tax 397.55 339.35 198.93 87.83 60.12 62.2
Deferred tax
11.51 52.59 30.23 14.64 23.64 6.94
charge
Total tax
409.06 391.94 168.7 73.19 36.48 55.26
expense
PAT 1,034.31 1,039.64 966.53 100.61 116.8 205.71
Revenue Recognition

Havells Hitachi
Goods Revenue from sale of goods Revenue from sale of goods
is recognized at the point in is recognized when the
time when control of the significant ownership rights,
goods is transferred to the including legal responsibility
customer and there are no and maintenance obligation,
unfulfilled obligations when have been transferred to the
delivery of goods occurs. customer, mostly during
delivery of the goods.
Revenue from the sale of
goods is measured at the fair
value of the consideration
receivable, net of returns and
allowances, volume rebates
and trade discounts
Services Havells provides installation, Revenue from services
yearly maintenance and rendered over a period of
additional warranty services time, such as annual
that are sold separately. maintenance contracts,
Because the client warranty obligations are
concurrently obtains and recognized on gradually over
consumes the advantages the period of the performance
supplied by the Company, the obligation. Since the client
Company recognizes revenue simultaneously get the
from the sale of services over benefits from the Company
a period of time rather than and consumes the benefits
all at once. The revenue from which is provided from the
activities connected to Company
providing services is
recognized as and when the
services are provided, in
accordance with the terms of
any applicable contracts with
the relevant parties

Comment – Looking at the business model of Havells providing goods and services in consumer
durable segment, it seems that performance obligation wise revenue recognition is well suited.
Also, as services accompanied with products are highly significant, gradual revenue recognition
after meeting performance obligation is appropriate. Direct revenue recognition on cash basis is
not suggested.
Inventory Valuation Policy:

Havells Hitachi
Valuation  Inventory of scrap  Inventories are
materials is valued at measured at net
net realizable value. realizable value. Other
The net realizable commodities kept for
value is the expected use in the manufacture
selling price in the of inventories are not
regular course of realized written down
business less the below cost if the
projected expenses of completed products
completion and sale into which they will
charges. be included are
intended to be sold for
more than their cost.
Costing Method  Cost of raw materials  Raw materials, Stores,
has been determined Spares, components
by using weighted and stock-in-trade at
average cost method It rates are determined
includes the costs of on the weighted
tariffs, taxes, average cost method.
acquisition and other  Cost of Goods in
expenses incurred to Transit is at actual
get the inventory to cost. Work-in-
their current location progress and finished
and condition. goods which includes
 Cost of finished direct labor, direct
goods, traded goods material, and extra
and work-in-progress manufacturing cost is
includes direct labor determined on
and an appropriate weighted average cost
share of fixed and method
variable production
overheads is
determined on
weighted average
cost.

Comments – Havells value their inventory at net realizable value that allows them to convey
their true financial position and also helps them to have a better tax planning. Havells as any
other company uses weighted average cost method for inventory costing as it allows them to
pinpoint their average cost of inventory by realizing cost of individual units and current
inventory stock. It also allows to use the average cost which simplifies further calculation.
Fixed Asset Accounting Policy:

Havells Hitachi
Depreciation  Depreciation on property,  The Company
plant and equipment is depreciates property,
calculated on prorata basis on plant and equipment over
straight-line method using their estimated useful
the useful lives of the assets lives using the straight-
estimated by management line method.
 Useful life  Useful life
 Plant and equipment - 15  Factory buildings – 15 to
years 30 years
 Moulds and dies – 6 years  Leasehold land – 98
 Vehicles – 8 and 10 years years
 Office equipment – 3 and 5  Other buildings – 3 to 60
years years
 Mobile phones – 3 years  Leasehold improvements
 Electric fans and installations – 1 to 10 years
– 3 and 10 years  Other buildings – 3 to 60
 Laptops and Computer – 3 to years
4 years  Office equipment – 3 to 5
 Building – 30 and 60 years years
 Furniture and fixtures – 10  Plant and equipment – 2
years to 21 years
 R&D equipment – 5 and 15  Vehicles – 5 years
years  Furniture and fixtures –
10 years
 Leasehold land – 98 yrs
Fixed assets recording  All fixed assets are recognized  Initial measurement of a
at fair value, except for trade financial asset is based
receivables which are on its fair value. If an
measured at transaction price. asset is not measured in
fair value, then at
transaction price (for
example, trade
receivables)
Impairment  At each reporting date, the  At each reporting date,
Company assesses whether an the Company evaluates
asset may be impaired based whether there are
on any signs of impairment. indications that an asset
The Company calculates the may be impaired. If any
recoverable value of an asset indication exists, or if
if any indication exists or if yearly impairment testing
annual impairment testing is is needed for an asset, the
required. Company estimates the
 The recoverable amount of an recoverable value of the
 asset is the greater of the asset.
item's fair value less its selling  The recoverable amount
expenses or its worth in use. of an asset is the greater
When an asset's carrying of the item's fair value
amount exceeds its less its disposal expenses
recoverable amount, it is or its value in use.
deemed impaired and is
written down to its
recoverable amount.

Comments – Havells use SLM method for determining their depreciation which makes its very
easy to apply and has chance of less errors. It allows to have the leniency of having same
depreciation amount in their P&L statements. Fair Value accounting is used to measure fixed
assets which allows Havells values to be accurate when the market is volatile and it will also
reflect the true income of company as the considered values are fair values. The impairment test
is done at reporting date which allows to determine the financial pictures for users and also
Havells can determine if an asset can produce the economic benefits as realized and assets are
reported at fair value in the balance statement preventing the chances of overstatement.

Cash flow Statement Analysis:

Havells Hitachi

2022 2021 2020 2022 2021 2020

CFO 1744.4 657.9 825 -126.7 609.72 -72.66

CFI -759 -763 -548 -167 -88.99 -72.77

CFF -547 190 -716 60.59 -389.8 333.47

Year 2020:

For Havells there is inflow of cash from operation activities and outflow of cash from Investing
and Financing activities whereas for Hitachi cash is coming from financing activities and
investment of cash in investing & operation activities.

Year 2021:
For Havells there is inflow of cash from operation & financing activities and investment of cash
in Investment activities whereas for Hitachi cash is coming from operation activities and
investment of cash in investing & financing activities.

Year 2022:

For Havells there is inflow of cash from operations and investment of cash in Investment &
financing activities whereas for Hitachi cash is coming from financial activities and investment
of cash in investing & operation activities.

Comments:
We can see that Havells operation has increased drastically from 2020 to 2022 means they are
increasing their manufacturing capacity by investing in machinery and other operation activities
on the other hand there is a decrease in Hitachi’s operation, although they are also investing
money but it may be invested in other segment which is not related to the operations.

Horizontal Analysis - Income Statement

Income Statement
Havells Hitachi
Year ended Year ended Year ended Year ended
Percentage
March 31, March 31, Percentage March 31, Dec 2020(12
change
2022 2021 change 2022 months)
INCOME
Revenue
from
operations 13,888.53 10,427.92 33.19 4883.96 3420.44 42.79
Total
Income 13,888.53 10,427.92 33.19 4883.96 3420.44 42.79
EXPENSES
Cost of raw
materials and
components
consumed 7,772.06 5,390.51 44.18 2780.09 1726.62 61.01
Purchase of
traded goods 1,831.48 1,615.46 13.37 118.24 97.69 21.04
Change in
Inventories of
finished
goods, traded
goods and
work in
progress -219.48 -531.07 -58.67 -127.15 -63.73 99.51
Subcontractin
g 286.5 266.81 7.38
Gross Profit 4,504.47 3,953.02 13.95 1826.28 1393.05 31.10
Employee
benefits
expense 1,014.65 885.33 14.61 486.75 369.41 31.76
Other
expenses 1,732.21 1,502.43 15.29 1028.88 772.75 33.15
PBITDA 1,757.61 1,565.26 12.29 310.65 250.89 23.82
Depreciation
and
amortization
expenses 260.83 248.86 4.81 95.46 77.17 23.70
PBIT
(Operating
income) 1496.78 1316.4 13.70 215.19 173.72 23.87
Finance costs 53.41 72.64 -26.47 41.39 20.44 102.50
PBT 1,443.37 1,243.76 16.05 173.8 153.28 13.39
Current tax 397.55 339.35 17.15 87.83 60.12 46.09
Deferred tax
charge 11.51 52.59 -78.11 14.64 23.64 -38.07
Total tax
expense 409.06 391.94 4.37 73.19 36.48 100.63
PAT 1,034.31 1,039.64 -0.51 100.61 116.8 -13.86

Comments - In case of Havells, a maximum positive percentage change is observed in raw

materials whereas maximum negative percentage change is observed in deffered tax charge. In
case of Hitachi, maximum positive percentage change is observed in finance cost whereas
maximum negative percentage change is observed in deffered tax charge
Vertical Analysis –Balance Sheet

 Within assets, the breakup is more inclined towards Current Assets (62.78%) and other is
of Non-Current Assets (37.22%) indicating that more chunk of investments is going
towards OpEx rather than CapEx
 Within Non-Current Assets, higher investments are made towards Plant, Property &
Equipment. Whereas in Current Assets, the investments are inventory heavy.
 Within Liabilities, the breakup is inclined towards Current liabilities (80% approx.) and
rest is towards non-current liabilities (20%) indicating Havells has more short-term debts
 Within short-term debts, major part is of trade payables. This shows that Havells is a
matured company and has good relationship with its vendors as they get their goods on
credit
 In non-current liabilities, we can infer that the company takes up loans which can indicate
that the company always looks towards increasing the production or maintaining the flow
of the production if the company lags on its amount payables
Horizontal Analysis – Balance Sheet
  We are seeing a drop in PPE vales over the years, which means that they are not investing
in PPE currently, maybe to tackle the liquidity loss due to COVID
 There also has been a reduce in total non-current assets from 50% to 37% indicating that
the company is investing more towards operations than fixed assets
 There has been a drastic increase in the cash reserves, almost double indicating that they
have kept cash reserved for smooth operation in times of uncertainties

Ratio Analysis:

Profitability Ratio -

Profitability Ratio Havells Hitachi

Gross Profit Ratio This ratio has been in For Hitachi as well the ratio
(Percentage) decrease since 2020 which is is in decrease. Sales is
not good sign. Even though increasing but there is
their Sales are increasing,
inefficiency in production
there is inefficiency in the
production which is resulting
in increased COGS
Net Profit Ratio (Percentage) This is also in decline. Sales This value has dropped
is increasing but the profit significantly for Hitachi. The
earned on it is not increasing. profit generated with $1 sale
is very less
Return on Assets (ROA) There has been an increase in Similarly, there has been an
Assets but the Net Income increase in Assets but
hasn’t increased. It might subsequent increase in sales
mean that currently there hasn’t happen which means
hasn’t been much return by there hasn’t been much
those assets, maybe the increase in the Net Income
company will see growth in
sales numbers because of
these assets.
Return on Capital Employed There has been a downward Similarly in Hitachi as well,
(Percentage) trend in this front as well. For the Net Income hasn’t
each dollar spent the income increased much by the influx
generated has decreased over of capital
the years
Return on Equity Decrease in these values as Similar story in Hitachi as
(Percentage) well indicate that the well, the company has seen a
company isn't producing downfall on the efficiency of
profits it once was producing profits
Basic Earnings per Share
(INR)
Comment: Due to COVID there has been a decline in the values of the above ratio for both the
companies. Since the market share of Havells is huge, it can survive the phase but the sales of
Hitachi declined visibly. Both the companies have invested again in Assets which might be
fruitful in the upcoming years, yearning them some Net Income. Basic EPS also shows that they
have taken some decisions which has mitigated the downward trend of the company's share.

Liquidity Ratios:

Havells Hitachi
Working Capital (INR) Havells has always Similar to Havells, Hitachi
maintained its Short-Term also maintained enough short-
assets (2973Cr.) which term assets which acted as
helped them in the crunch buffer in times of difficulties
situation of COVID where like COVID
they hadn’t struggled as they (345.7Cr.)
always had enough cash in
hand
Current Ratio or Working 1.81 1.14
Capital Ratio Havells is in good financial Hitachi is borderline safe but
terms in terms of liquidity as might face Liquidity issues in
the ratio above 1.5 is deemed the near future unless they
as good. Positive cash flow increase the cash flow
has helped the company to through other means or by
function even when revenue cutting unnecessary incomes.
was not generated during
COVID

Quick Ratio 1.001 0.84

Havells has just enough Hitachi doesn’t have enough
liquid assets to cover its liquid assets to cover the
liabilities in a short period of liabilities. The company is
time. The company is in risk already in a risk.
for the immediate future

Comment: Havells being a big conglomerate has survived the COVID period but Hitachi hasn’t.
Hitachi also seems to have spent its liquid cash in buying assets which can be inferred from the
Quick Ratio and Working Capital Ratio, which shows that they are running low on Liquid Cash
to continue their operations and cover its liabilities.
Solvency Ratio:

Havells Hitachi
Debt to Equity Ratio 0.04 0
Havells is relying more on One good thing about Hitachi
Equity (Stakeholders) fund is that they are debt free
rather than on Bank Loans company which also limits
which is a good thing the returns which can be
realized to shareholders
Debt to Assets Ratio 0.037 0.035
Ratio less than 1 indicates This indicates that they have
that the assets are greater than more assets than debts but in
Debt which is a good thing the above tables we have seen
for Havells both for short that they still need more
term and long term liquid cash
Interest Coverage Ratio (Times) 28.024 5.19
Higher value means that For Hitachi we have already
company is nowhere close to seen that they are low on
bankruptcy and the operating liquid cash and this ratio
profit numbers are good being low shows that it might
face some difficulties in the
near future
Comment: Havells is performing well on all fronts whereas Hitachi as we have already seen that
Hitachi doesn’t have much liquid cash which is also hampering it to grow or increase production
which in turn will improve profits. They also might face issue in the near future and can even go
bankrupt.

Efficiency Ratio:

Havells Hitachi
Inventory Turnover (in times) 12.24 2.06
This ratio shows that Havells Ratio is quite low which
has strong sales and high means that Hitachi has
conversion rate of it might difficulties clearing its
usually face insufficient inventory stocks. This also
inventory issues shows that it has weak sales
Day sales in Inventory (in 29.39 174.57
days) This again shows that Havells Hitachi takes almost 6
faces no difficulties in doing months to clear its inventory
clearing its inventory, within which is not a good sign for a
a month as well company as they always have
to plan out their production
Receivable Turnover (in 17.51 3.63
times) Higher ratio means that the Hitachi faces difficulties in
company is efficient at collecting /clearing its debts
collecting/clearing debts and hence the low ratio.
usually operates on cash basis
Day Sales outstanding (in 20.55 99.05
days) This ratio being better than This again reiterates that
that of Hitachi means that Hitachi faces issues clearing
Havells doesn’t face much its debts, they also don’t
difficulties in receiving receive payments in due time
payments and/or of credit which might make them
sales inefficient
Payable Turnover (in times) 3.94 1.71
Ratio higher than Hitachi Bad ratio, unable to pay off
shows that Havells is doing in creditors in due time.
terms of paying its creditors
on time and maintaining the
relationship with them
Days payable outstanding (in 20.55 99
days) Just like the above ratio, As usual, Hitachi takes 3
Havells takes less than a months to clear off its
month to pay back its suppliers which is a bad sign
suppliers which is a good sign for the company on the long
run if it doesn’t have good
relationship with its suppliers
Operating Cycle (days) 49.94 258.95
It takes 50 days for Havells to Almost 9 months are taken by
receive inventory, sell the Hitachi to receive inventory,
inventory and collect cash sell the inventory and collect
from the sales cash from the sales
Cash Conversion Cycle -41.35 66.308
(days) Negative value shows that It takes 2 months for Hitachi
Havells receives pre-orders to convert its investment in
even before the production the inventory into
has started sales/profits

Comments: Through the above ratio we can infer that Hitachi is highly inefficient in its
production as well as in collecting/clearing debts plus also works on credit which it doesn’t repay
in time. Over the long period of time, it might be difficult for it to sustain.

Results and Recommendations:

 Looking at all the data above and doing the ratio analysis, we can see that Hitachi is in
dire need of management and foreshadowing. They are operating very inefficiently. Their
efficiency ratios show bad signs for the company
 Also looking at the Hitachi numbers prove that Havells is performing extremely well and
sustaining its spot as the market leader in the FMEG sector. It is highly efficient; its
stocks are also performing well giving good returns to the customers
  Looking at the profitability ratios we can see that margins are falling for Hitachi but
increasing for Havells. Net Income is falling for both the companies, this might be due to
COVID and we might see a rise in the near future.
Finally, we would like to say that Havells being a market leader is still maintaining its position
and performing exceptionally well when compared to its competitors. It has diverse range of
products; no competitor is out there who can compete with them across products. And despite
COVID it is very sustainable. Cash flow from operations has increased drastically.