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Crompton Greaves slides as Q2 PAT declines 27% YoY to Rs 124 cr

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Capital Market
Last Updated : Oct 27 2022 | 1:04 PM IST

Crompton Greaves Consumer Electricals slipped 1.78% to Rs 371.45 after the company reported 27.2% decline in standalone net profit to Rs 124.05 crore on a 3.8% fall in revenue from operations to Rs 1331.61 crore in Q2 FY23 over Q2 FY22.

On the segmental front, Electric Consumer Durables revenue was Rs 1,062 crore (down 3% YoY) while that from Lighting Products was Rs 269 crore (down 7% YoY) in the second quarter. Current Quarter segment wise growth was impacted due to previous year high base, driven by post COVID pre buying.

On consolidated basis, the company's net profit skid 17.7% to Rs 130.71 crore despite of a 22.7% rise in revenue from operations to Rs 1,699.50 crore in Q2 FY23 over Q2 FY22.

Profit before tax in Q2 FY23 stood at Rs 153.26 crore, down by 28% from Rs 212.89 crore in Q2 FY22.

Consolidated EBIDTA de-grew to Rs 193 crore in Q2 FY23 from Rs 214 crore posted in Q2 FY22. EBIDTA margin slumped to 11.4% in Q2 FY23 as against 15.5% in Q2 FY22.

Crompton Appliances maintained its strong growth momentum. The long-term strategic investments in key initiatives were continued through the quarter including brand building, innovation center and go-to market. Alternative channels have delivered robust growth with increasing contribution to overall revenue. Butterfly business continued to perform in line with plans; the Butterfly offline business grew in double digits aiding gross margin improvement, stated the company.

Shantanu Khosla, managing director, said: Consolidated Q2 delivered a revenue growth of 23% aided by the Butterfly acquisition amidst unfavourable base period and high retail inflation. H1 registered a strong growth wherein consolidated revenue grew by 46% and standalone Crompton grew by 21%. We continue to focus our efforts in restoring margins through accelerated cost savings, premiumisation across segments and appropriate pricing actions.

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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.

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First Published: Oct 27 2022 | 12:47 PM IST

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