Crompton Greaves Consumer Electricals Ltd posted its fiscal first quarter profit at Rs 122.03 crore, down 3.1 per cent as against Rs 125.95 crore during the first quarter of FY23. It posted revenue from operations at Rs 1876.85 crore, marginally up from Rs 1862.94 crore during the corresponding quarter of FY23. The company EBITDA stood at Rs 186 crore.
The total income during the quarter stood at Rs 1896.65 crore versus Rs 1873.35 crore during the same quarter last year. However, the total expenses by the company during the quarter in review stood at Rs 1740.83 crore, up 2.8 per cent in comparison to Rs 1693.09 crore during the first quarter of FY23.
“We witnessed a pickup in demand from June 2023 onwards amidst weak consumer sentiment in an inflationary environment and unfavourable weather conditions. ECD performance was led by appliances, especially mixer grinders, small appliances and air coolers,” said Promeet Ghosh, MD & CEO, Crompton Greaves.
Crompton Greaves’ Q1 performance across business verticals
Crompton Greaves’ electric consumer durables segment posted a consolidated revenue at Rs 1428.98 crore, up 6.1 per cent on-year in a subdued environment. “This was led by strong momentum in the premium fans segment, particularly BLDC, and continued double-digit growth in appliances. The Agricultural Pumps category grew by 7 per cent YoY,” it said in a regulatory filing.
The lighting products registered a revenue of Rs 228.98 crore during the quarter ended June 2023. In the lighting category, work continues on the structured go-to-market strategy to improve the B2C reach at a pan-India level and expand product portfolio range. This would enable the business to invest behind growth drivers in future, the company said.
Butterfly Gandhimathi Appliances Ltd recorded a revenue of Rs 218.89 crore during Q1FY24. “It continued to focus on de-risking channel mix leading to strong double-digit growth in B2C channels. Rebound in trade channel and value engineering led to strong expansion in material margin,” said Crompton Greaves.
“Our journey towards premiumization of our portfolio led to higher share of premium fans at 28 per cent vs 24 per cent in Q1FY23. In pumps, we have strengthened our residential product portfolio through our redefined brand architecture. Our focus on expanding the rural channel will improve our share in the agricultural segment. Lighting segment witnessed structural improvements in EBIT Margins to ~12 per cent (+310 bps) and we have initiated corrective actions to put the lighting business back on its growth path,” said Promeet Ghosh.
He further added, “Our investments towards strengthening brand awareness, expanding our Go-to-Market strategy, building a centre for innovation excellence and people capabilities as well as cost optimization initiatives will help drive growth going forward.”