Crompton Greaves slips after poor Q4 result

Crompton Greaves Consumer Electricals fell 1.23% to Rs 205 after consolidated net profit dropped 27.4% to Rs 102.10 crore on a 14.96% fall in net sales to Rs 1026.34 crore in Q4 March 2020 over Q4 March 2019.

Crompton Greaves Consumer Electricals said that growth remained strong across all products till the lockdown (January and February growth 14% Y-o-Y). Market share increased in fans and consumer lighting. Appliances business continued to deliver strong double digit growth based on excellent consumer offerings behind coolers and geysers.

PBT margin increased sequentially with strengthened cost reduction programmes neutralizing the adverse volume impact due to Covid- 19.

Given the uncertain economic outlook, the board considered it prudent not to recommend any dividend for FY20.

Commenting on the quarter results, company's managing director, Shantanu Khosla said COVID-19 had a significant adverse impact on the company's performance for the quarter.

Crompton's consolidated net profit rose 23.7% to Rs 496.39 crore on a 0.9% increase in net sales to Rs 4520.26 crore in the year ended 31 March 2020 as compared to the year ended 31 March 2019.

Crompton Greaves Consumer Electrical 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.

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