Crompton Greaves Financial Results for Quarter Ended June 2019

• Crompton Greaves electrical consumer durables (ECD) segment grew by 16 per cent
• Company’s profit after tax margin increased from 8.7 per cent in Q1 FY19 to 9.1 per cent in Q1 FY20

Crompton Greaves Consumer Electricals has announced its financial results today for the quarter ended June 2019. The company said that its revenue grew in the quarter by 18 per cent in comparison to the revenue same quarter last year.

Commenting on the results, Crompton Greaves MD, Shantanu Khosla said “ECD segment continued its strong growth and our ongoing efforts in driving innovation with the introduction of ‘Aura Fluidic’ fan and ‘Optimus’ desert cooler that have helped sustain this momentum. We will continue to focus on new product launches and brand development in line with our objectives.”

Strong performance in fans, pumps and coolers vertical

The board of directors, at its meeting held on 24th July 2019 approved the results of the company for the quarter ended 30th June 2019. Total Income for the quarter was Rs 1,346.8 crores, a growth of 11.9 per cent year on year (y-o-y) largely driven by volume growth. The Electrical Consumer Durables (ECD) segment grew by 16 per cent, driven by strong performance in fans, pumps and coolers. LED Lighting continued to see robust volume growth partly offset by price erosion. However, conventional lighting continued to decline.

Shantanu Khosla added, “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. Crompton at the time of launching its anti-bacteria bulb had said that it will be incorporating a multimedia campaign with the inclusion of TV, Digital, OOH and PR mediums.

Shantanu Khosla had said “ECD segment has shown good results and our ongoing efforts in driving innovation with the introduction of ‘Aura Fluidic’ and ‘Air Buddy’ have helped continue the momentum.”