Crompton Greaves Consumer Electricals was locked in lower circuit of 10% at Rs 299.10 after the company reported 41% decline in consolidated net profit to Rs 88.19 crore despite of 7.5% rise in net sales to Rs 1,516.21 crore in Q3 FY23 over Q3 FY22.
On the segmental front, Electric Consumer Durables revenue was Rs 1,020.10 crore (down 7.2% YoY) while that from Lighting Products was Rs 247.68 crore (down 20.44% YoY) in the third quarter.Butterfly Products reported revenue of Rs 248.43 crore in Q3 FY23. In this segment, the company continued to invest in improving retail share, strengthening brand awareness, building key innovation and people capabilities and driving cost excellence.
Profit before tax in Q3 FY23 stood at Rs 114.59 crore, down by 42.3% from Rs 198.73 crore in Q3 FY22.
Consolidated EBIDTA de-grew 35.64% to Rs 130 crore in Q3 FY23 from Rs 202 crore posted in Q3 FY22. EBIDTA margin slumped to 10.1% in Q3 FY23 as against 14.3% in Q3 FY22.
Crompton Appliances said that it was a challenging quarter due to the subdued consumer demand, increased competitive intensity and the transition of fans business to new BEE norms. Fans transition to new BEE norms was managed smoothly without any disruption. While the pumps business continued to face significant headwinds, the company has initiated actions to strengthen its product portfolio through implementation of a new brand architecture and strategic pricing actions, which have started showing promising results.
To revive growth in Lighting, the household appliances maker accelerated innovation projects and is driving a more structured GTM approach supported by digitalization. Appliances business continued its industry leading growth momentum based on strong improvements in our small domestic appliances segment, said the company.
Shantanu Khosla, managing director, said: Consolidated Q3 revenue grew by 7.5% and year to date (YTD) December revenue growth is 32%. We continue to invest behind our long term initiatives despite the current market slowdown as we believe it is critical for our long term success. Our plans to grow the butterfly business are track.
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.
The scrip hit a 52 week low of Rs 294.10 on the BSE today.
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