Crompton Greaves Consumer Electrical declined 2.46% to Rs 245.8 after the company's consolidated net profit tumbled 39.41% to Rs 74.26 crore in Q1 June 2020 from Rs 122.57 crore in Q1 June 2019.
Revenue from operations stood for Q1 June 2020 stood at Rs 720.1 crore, falling 46.53% from Rs 1346.84 crore in Q1 June 2019. The result was announced during market hours today, 24 July 2020.Profit before tax stood at Rs 101.01 crore, tumbling 46% year on year. Total tax expense slumped 60% to Rs 26.21 crore in Q1 June 2020 over Q1 June 2019.
The company said the recovery started in May and continued in June across all product groups. In June, ECD and B2C Lighting business (excl EESL) reached about 90% of last year levels. PBT margin increased sequentially as accelerated cost reduction programmes neutralized the negative operating leverage due to COVID-19. Continued drive on collections delivered a very good cash flow, it added.
Commenting on the company's results, Shantanu Khosla, managing director, said During these unprecedented times, the health and safety of our employees received our highest attention. Business confidence picked up in May and the revival gathered pace in June across all product categories. The Company's robust cost management and operational efficiency programmes aided in improving margins sequentially. However, COVID - 19 had a significant adverse impact on the Company's volumes because of lockdowns. Even as the gradual unlocking continues, fresh restrictions and temporary lockdowns imposed in select cities, extend the tenure of uncertainty. Thus, it would be premature to say that the problems are completely behind us. Cash conversion recorded significant improvement supported by actions on driving collections and working capital management. Margin resilience and robustness of the cash conversion cycle were key highlights of this quarter's performance.
Crompton Greaves Consumer Electrical (CG 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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