In This Article:
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Standalone Revenue: 5,150 Crores for the quarter, a 12.5% increase year-on-year.
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EBIT Growth: 15% YoY with a margin of 9.7%, up 70 basis points.
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ECD Margins: Improved by 160 basis points.
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Fans Business Growth: Mid-single digit growth led by TPW fans.
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Pumps Growth: 19% YoY driven by solar pump business.
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Appliances Business: Mixer grinders sales up 46% YoY.
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Lighting Business Growth: Accelerated to 3% YoY.
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Butterfly EBITDA Margin: Improved by 600 basis points to 7.2%.
Release Date: February 12, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Crompton Greaves Consumer Electricals Ltd (BOM:539876) reported a 12.5% year-on-year increase in standalone revenue, reaching 5,150 Crores for the quarter ended December 2024.
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The company's EBIT grew by 15% year-on-year with a margin expansion of 70 basis points to 9.7%.
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The pumps segment saw a 19% year-on-year growth, driven by successful execution and ramp-up in the solar pump business.
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The mixer grinders segment experienced a 46% year-on-year growth, fueled by robust demand and the introduction of higher voltage mixers.
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Crompton Greaves Consumer Electricals Ltd (BOM:539876) has been ranked fourth globally among consumer electrical companies by DJSI on ESG parameters, with a significant improvement in their ESG score from 9 to 62 over two years.
Negative Points
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Consumer sentiment has been subdued, impacting demand across various segments.
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The lighting business continues to face price erosion challenges, although there is a discernible improving trend.
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The MFI channel has seen significant weakness, with rural demand not being very strong.
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The air coolers segment, despite achieving the highest ever pre-season growth, was impacted by a delayed onset of winter.
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The Butterfly Gandhimathi Appliances Limited segment has been in decline, although efforts are being made to arrest this trend and improve margins.
Q & A Highlights
Q: What are the key factors driving the recovery in Butterfly Gandhimathi Appliances, and can this recovery be sustained? A: Promeet Ghosh, CEO, explained that the recovery is driven by channel parity, focusing on core categories and markets, and optimized resourcing. Shweta Sagar, Chief Business Officer, added that these efforts have shown results, but the process is still a work in progress.
Q: How is the B2B lighting segment performing, and is there any price erosion? A: Promeet Ghosh noted that the B2B lighting segment has been competitive, but Crompton is expanding its presence in commercial and industrial areas to counteract this. The company maintains a base margin strategy and has seen strong performance in B2C lighting.