Crompton Greaves rallies after strong Q2 numbers

Crompton Greaves Consumer Electricals jumped 7.78% to Rs 308.75 after the FMEG company posted a 27.8% rise in consolidated net profit to Rs 141.68 crore in Q2 September 2020 from Rs 110.88 crore in Q2 September 2019.

Consolidated net sales for Q2 September 2020 stood at Rs 1,213 crore, rising 12.8% as against Rs 1,075.79 crore in the corresponding quarter last year. The result was announced after market hours yesterday, 22 October 2020.

Profit before tax (PBT) stood at Rs 189.14 crore in Q2 September 2020, surging 49% year on year (YoY). Current tax expenses were steeply higher at Rs 49.86 crore in Q2 September 2020 compared with Rs 0.43 crore in Q2 September 2019.

 

The Electrical Consumer Durables segment grew 18%, driven by strong performance in all segments. Lighting business continued on its recovery path on the back of strong volume growth in LED products. The company further added that the actions taken to reduce costs and improve mix in lighting have helped deliver double digit margins of 11.7%.

EBITDA rose nearly 47% to Rs 191 crore in Q2 September 2020 from Rs 130 crore in Q2 September 2019. EBITDA margin grew to 15.8% in Q2 September 2020 from 12% in Q2 September 2019.

Commenting on the performance, Shantanu Khosla, MD said, We continue to remain focused on the health and well-being of our employees and our partners. All segments of our business have continued to recover through the quarter. Our GTM investments are resulting in increased distribution across traditional and alternate channels. Market share continues to grow behind an accelerated innovation program. Our cost reduction program continues to deliver strong results driving bottom line faster than top line.

Meanwhile, the company has declared an interim dividend of Rs 3 per share.

Crompton Greaves 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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