Crompton Electricals reports 18% drop in Q2 profit as expenses surge

Indian household appliance maker Crompton Greaves Consumer Electricals reported a near 18% drop in September-quarter profit, dented by higher expenses and subdued performance

BENGALURU (Reuters) - Indian household appliance maker Crompton Greaves Consumer Electricals reported a near 18% drop in September-quarter profit on Wednesday, missing analyst estimates, dented by higher expenses and subdued performance in the electrical consumer durables division.

The company's profit fell to 1.31 billion Indian rupees ($15.96 million) for the three months ended Sept. 30, from 1.59 billion rupees a year ago.

Analysts, on average, had expected a profit of 1.4 billion rupees, according to IBES data from Refinitiv.

In addition to LED lighting and fans, Crompton Greaves also sells pumps, water heaters, and kitchen appliances.

Overall expenses surged by 31.6% in the second quarter. The company's revenue from operations rose by 22.7% to 17 billion rupees. Electric consumer durables, the company's biggest segment, saw revenue slide by 3.1% to 10.62 billion rupees.

Rival Havells India Ltd last week reported a fall in earnings and pointed out that the Russian invasion of Ukraine has increased commodity prices, putting pressure on the electrical goods industry.

($1 = 82.0570 Indian rupees)

 

(Reporting by Navamya Ganesh Acharya in Bengaluru; Editing by Sherry Jacob-Phillips and Shailesh Kuber)