Havells reported healthy revenue growth of 31.7% YoY. However, the gross margin was down 605bps YoY due to (1) revenue mix deterioration, (2) steep commodity inflation and (3) lag effect of price hikes. The company benefitted from revival in economy and higher infrastructure spending. Profitability of Lloyd segment remained under stress even in Q2FY22 due to higher input prices and negative operating leverage.