Crompton surprises Street with Q3 profit; analysts remain bullish on stock

While lighting segment saw continued pricing pressure, the electrical consumer durables segment was the show stopper in December quarter

Crompton Greaves Consumer Electricals’ (Crompton Greaves’) better-than-expected profit came as a surprise to the Street. On a day when the leading indices were in the red, the stock scaled to its 52-week high before closing 3.6 per cent up. Analysts indicate there could be more gains ahead for the electrical and consumer goods maker.
 
For the December quarter, though the company’s lighting products segment (a fourth of revenues) saw continued pricing pressure and hence led to a 9 per cent year-on-year decline in revenues (excluding EESL), the electrical consumer durables (ECD) business saved its blushes, with growth of 11