Crompton Greaves Q3FY22: Profit fell 1.87% YoY to Rs 148.26

Crompton Greaves Consumer Electricals Limited today reported a 1.87 per cent YoY decline in the consolidated profit at Rs 148.26 crore for the quarter ended December 31, 2021. It had posted a profit of Rs 151.09 crore in the corresponding quarter last fiscal year.

The company's revenue from operations grew 4.62 per cent YoY to Rs 1,410.59 crore compared to a revenue of Rs 1,348.17 crore posted last year.

Its EBITDA was almost flat at Rs 201.53 crore in Q3FY22 as compared to Rs 200.05 crore posted last year.

Fans growth was driven by strong performance in the premium & decorative segments, leading to an all-time high market share. Appliances' business continued to deliver robust growth based on excellent consumer offerings in the core categories of water heaters, mixer grinders and irons. B2C LED lighting grew in excess of 20 per cent.

The company in a statement said, "Input prices remained elevated and were largely offset through a combination of mix improvement, calibrated pricing and cost reduction programs. This enabled the company to maintain its superior margin profile despite doubling its advertising spend during the quarter."

We continue to invest in brand building, channel development and our R&D capabilities to innovate and bring futuristic products to our consumers. During the quarter, the company also opened a state-of-the-art R & D centre, housed in a 50000 sq. ft facility in Mumbai.

Shantanu Khosla, Managing Director, Crompton Greaves said "Health & safety of our employees continue to receive our highest attention, even as the third wave of the pandemic has created new challenges. The Electrical Consumer Durables business witnessed growth in most categories. B2C lighting business improved its growth trajectory. While commodity cost pressures sustained, timely actions have largely mitigated their impact and maintained margins."

ECD Performance: (18 per cent CAGR over Q3 FY20, Fans- 22 per cent CAGR, Appliances- 28 per cent CAGR; ECD 6 per cent GoLY)

• Broad-based growth across all product lines.
• Strong performance with a growth of 11 per cent over last year in Fans driven by premium & deco fans
• Appliance business continues growth trajectory with 13 per cent GoLY driven by core categories Geysers & Irons.
• The pump business was impacted by an industry-wide slowdown.

Lighting Performance (B2C – 11 per cent CAGR over Q3 FY20)

• B2C Lighting LED continue to witness healthy value growth of 22 per cent over last year.
• Lighting B2G business continues to face slow order pick up.

Market Share gains and leveraging alternate channel

• We continued to gain market share in Fans (+2.3 per cent)
• E-commerce and MT channel continued to deliver as expected; Rural channel continued its superior growth of 198 per cent YoY

Cash Conversion

• We continue to maintain a healthy Balance sheet to support business requirements and invest in the long term growth of the company.

Material margins remain healthy at 31.7 per cent

• Our aggressive cost savings via Project Unnati, focus on premiumization and timely price hikes have enabled us to maintain material margins.