Crompton Greaves Consumer gains on strong Q3 results

The stock rallied 8% to Rs 185 on the BSE

Crompton Greaves Consumer Electronics rallied 8% to Rs 185 on the BSE after the company reported a healthy 39% year on year (YoY) growth in standalone net profit at Rs 57 crore for the quarter ended December 2016 (Q3FY17) on back of strong operational performance.

Total income from operations of the company grew 9.8% YoY at Rs 889 crore, while total expenditure rose 8.5% at Rs 792 crore over the previous year quarter.

Crompton Greaves Consumer Electronics said it was able to limit the impact of demonetization by undertaking a series of actions such as special incentives for channel partners, selective extension of credit to dealers, focused pricing action, and new product launches.

The company’s EBITDA (earnings before interest, tax, depreciation and amortization) margin improved to 11.18% in Q3FY17 from 10.22% in Q3FY16.

“Laying out competitive pricing across the broader LED portfolio and the launch of our innovative Anti-dust fan helped us in gaining visibility, recall and sales. Our margin expansion projects and continued focus on premiumisation have helped us expand our margin even during these testing times,” said Shantanu Khosla, managing director, Crompton Greaves Consumer Electronics.

At 11:42 am; the stock was trading at Rs 184, close to its 52-week high of Rs 191 touched on October 25, 2016 in intra-day trade. A combined 1.15 million shares changed hands on the counter on the BSE and NSE so far.