NewsVoir
Mumbai (Maharashtra) [India], August 14: Crompton Greaves Consumer Electricals Ltd. (‘Company’), India’s leading Consumer Durables player, reported its standalone and consolidated financials for the first quarter ended 30th June 2023.
Financial Highlights:
Consolidated Revenue for the quarter at Rs 1,877 Crs. EBITDA at Rs 186 Crs and PAT Rs 122 Crs.
Standalone Revenue for the quarter at Rs 1,657 Crs, EBITDA at Rs 166 Crs, PAT at Rs 115 Crs.
Segment Highlights:
ECD category delivered a competitive growth of 6% YoY in a subdued environment. This was led by strong momentum in the premium fans segment, particularly BLDC, and continued double-digit growth in Appliances. Agricultural Pumps category grew by 7% YoY. Investment behind the brands accelerated.
In Lighting category work continues on the structured Go-To-Market strategy to improve the B2C reach at a pan-India level and expand product portfolio range. This would enable the business to invest behind growth drivers in future. EBIT margin expansion primarily aided by cost optimization initiatives.
Butterfly Gandhimathi Appliances Ltd. continued to focus on de-risking channel mix leading to strong double-digit growth in B2C channels. Rebound in Trade channel & value engineering led to strong expansion in Material margin. Investments behind marketing and people continues.
Commenting on the CGCEL’s performance, Promeet Ghosh, MD & CEO, said, “We witnessed a pickup in demand from June 2023 onwards amidst weak consumer sentiment in an inflationary environment and unfavourable weather conditions. ECD performance was led by Appliances, especially Mixer Grinders, Small Appliances and Air Coolers. Our journey towards premiumization of our portfolio led to higher share of premium Fans at 28% vs 24% in Q1 FY23. In Pumps, we have strengthened our Residential product portfolio through our redefined brand architecture. Our focus on expanding the Rural channel will improve our share in the Agricultural segment. Lighting segment witnessed structural improvements in EBIT Margins to ~12% (+310 bps) and we have initiated corrective actions to put the lighting business back on its growth path.
Our investments towards strengthening brand awareness, expanding our Go-to-Market strategy, building a centre for innovation excellence and people capabilities as well as cost optimization initiatives will help drive growth going forward.”
CGCEL is India’s market leader in Fans, no. 1 player in Residential Pumps and has leading market positions in its other product categories. The Company manufactures and markets a wide spectrum of consumer products - Fans, Lights, Pumps and Appliances including Kitchen Appliances. The Company has strong dealer base across the country and wide service network offering robust after sales service to its customers.
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