Crompton Greaves Consumer Electricals Business Grew 11 Per cent in Q2FY20

• The company had reported income of Rs 1,346.8 crores during last quarter
• Crompton Greaves’ profit after tax (PAT) margin increased from 7.4 per cent in Q2 FY20 to 10.3 per cent in Q2FY20

Crompton Greaves’ Board of Directors, at its meeting held on 23 October 2019, approved the results of the company for the quarter ended 30 September 2019. The company said that its total income for the quarter was Rs 1,075.8 crores.

“ECD (Electrical Consumer Durables) segment maintained its growth momentum on the back of innovative new product launches. We remained focused on investing in brand building and capability development. While non EESL LED volumes registered strong volume growth, the segment also witnessed price erosion. Our cost reduction program continues to deliver encouraging results driving bottom line faster than topline,” shared Shantanu Khosla, MD, Crompton Greaves.

Electrical consumer durables segment grew by 11 per cent

The company has registered a growth of four per cent year on year (y-o-y). It’s electrical consumer durables segment grew by 11 per cent. Crompton Greaves shared that this growth was driven by strong performance in fans, pumps and geysers. Lighting segment, as per the company, continued to see top-line challenges due to price erosion, even though volume growth remained strong.

Company’s official statement read, “Profit after tax for Q2FY20 was at Rs 111 crores, up by 44 per cent helped by a lower tax rate. PAT margin increased from 7.4 per cent in Q2 FY20 to 10.3 per cent in Q2FY20.

Shantanu Khosla, at the time of last quarter results has said, “In Lighting, we launched an ‘Anti-bacterial bulb’, based on a unique and meaningful consumer proposition, which has been very well received in the market. Investments in B2B Lighting are beginning to show results with a healthy order pipeline. Our cost reduction program continues to deliver encouraging results driving bottom line faster than topline.”

Crompton’s profit after tax at a consolidated level for Q4FY19 was at Rs 140.5 crores and FY19 was at Rs 401.4 crores. The board of directors at Crompton had then recommended a dividend of Rs 2/share.