Crompton Greaves Q2 PAT up 24% YoY to Rs 170 crore

Crompton Greaves Consumer Electricals reported 24.4% rise in standalone net profit to Rs 170.48 crore on a 15.6% increase in revenue from operations to Rs 1,384.81 crore in Q2 FY22 over Q2 FY21.

On the segmental front, Electric Consumer Durables revenue was Rs 1,096.43 crore (up 17.7% YoY) while that from Lighting Products was Rs 288.38 crore (up 8.1% YoY) in the second quarter.

Other income increased by 70.7% YoY to Rs 28.44 crore during the quarter.

Total expenses rose by 15.3% to Rs 1,188.76 crore in Q2 FY22 from Rs 1,031.32 crore in Q2 FY21, due to a sharp increase in raw material costs (up 25.9% YoY), stock-in trade purchases (up 15.9% YoY) and employee expenses (up 20.8% YoY).

The company said that the commodity costs continued to rise and were offset by cost reduction initiatives, mix enrichment and calibrated price increases. Consequently, EBIDTA margins at 15.5%, expanded by 370 bps over the previous quarter. EBITDA for the quarter was Rs 215 crore.

Profit before tax in Q2 FY22 stood at Rs 224.49 crore, up by 22.2% from Rs 183.73 crore in Q2 FY21.

With easing of restrictions in June, Crompton Greaves witnessed improvement in business activity as compared to Q1. Fans growth was driven by strong performance in Premium & Decorative segment leading to higher market share.

The company's Appliance business continued to deliver excellent growth based on superior consumer offerings in core categories viz. geysers, mixer grinders and irons. Lighting business continued to deliver double digit EBIT margin driven by B2C (business-to-consumer) growth of 19%, it added.

Shantanu Khosla, managing director, said: ECD (electrical consumer durables) segment delivered strong growth across categories and geographies. B2C LED lighting business maintained its upward growth trajectory backed by commensurate value growth. While commodity cost pressures sustained, timely actions have largely mitigated their impact and restored margins.

Crompton Greaves Consumer Electricals manufactures and markets a wide spectrum of consumer products, ranging from fans, lamps and luminaries to pumps and household appliances such as water heaters, coolers, mixer grinders and irons.

The scrip advanced 1.37% to end at Rs 469.35 on the BSE on Friday.

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