Crompton Greaves Q1 results: Net profit up at Rs 152 cr on strong demand

Home appliances maker Crompton Greaves Consumer Electricals beat first-quarter profit estimates on Wednesday, helped by higher demand for fans and air coolers amid extreme heat conditions in the country.

The company reported consolidated net profit of Rs 152 crore ($18.2 million) for the quarter ended June 30, up 28 per cent from a year ago. Analysts were expecting a profit of Rs 147 crore as per LSEG.

Revenue from operations jumped 14 per cent to Rs 2,138 crore, while cost of materials consumed fell to Rs 468 crore.

KEY CONTEXT

While India's summer season typically stretches from March to May, many parts of the country recorded temperatures in excess of 40 degrees Celsius, along with increasingly warmer nights in June, boosting sales of appliances like fans and air coolers.

Analysts noted that the country's consumer durables sector witnessed strong demand despite charging higher prices.

Whirlpool of India also beat first-quarter profit estimates, helped by strong demand for its air conditioners and refrigerators, while Havells India missed profit estimates, as higher expenses offset improved demand.