Crompton Greaves Consumer Electricals posts moderate Q3 numbers with healthy margins!

In Q3FY22 Crompton posted decent topline growth on the back of a higher base due to pent-up demand last year same quarter and margins maintained a healthy level due to cost reduction, mix improvement and pricing actions.

One of the leading manufacturers of consumer products company Crompton has announced its Q3 results on Friday post market hours. Today, Nifty got momentum with positive global cues, whereas Crompton was able to ride the momentum with their Q3 results.   

Q3 earnings report:   

On a consolidated basis, Crompton Revenue grew 7 per cent to Rs 1,410 crore on a YoY and 1 per cent up QoQ. Their major revenue contributors are as follows.  

1. Electrical consumer durables (contributes 78 per cent of total revenue) sales grew 6 per cent YoY. They had a strong performance with a growth of 11 per cent over last year in fans driven by premium and decorative fans. Appliance business continues growth trajectory with 13 per cent YoY driven by core categories geysers and irons. 

2. Lighting Products (contributes remaining 22 per cent of total revenue) grew 8 per cent YoY. B2C lighting LED continue to witness healthy value growth of 22 per cent over last year. 

EBITDA grew 3.3 per cent to Rs 202 crore on YoY and 5 per cent down on QoQ and the corresponding margin was flat, 14.3 per cent, contracted 50 bps on YoY. Despite raw material cost pressure they were able to maintain healthy margins due to aggressive cost savings via Project Unnati, focus on premiumization and timely price hikes. 

Net Profit was flat on YoY at Rs 148 crore and 12 per cent down on QoQ. The net profit margin was 10.5 per cent which got contracted 60 bps on YoY.   

At 2.40 PM, Crompton was trading at Rs 422, up by 1.75 per cent for the day.