Crompton Greaves Q1 profit drops 19.4% on weak consumer demand

Crompton Greaves Consumer Electricals Ltd on Thursday reported a 19.4% decline in its first-quarter profit, as unseasonal weather dampened demand for fans and other cooling products, offsetting gains in its solar pumps and kitchen appliances segments.

The company’s net profit fell to ₹122.3 crore for the quarter ended June 30, from ₹151.7 crore a year earlier. Revenue declined 6.5% to ₹1,998.3 crore, while earnings before interest, taxes, depreciation and amortisation (EBITDA) dropped 17.6% to ₹191.6 crore. Operating margin narrowed to 9.6% from 10.9% in the year-ago period.

The company said its fans business remained subdued due to a decline in TPW (Total Peak Wattage) demand, while premium product launches under Niteo, Nucleoid and Fluido series gained traction. Revenue from its electrical consumer durables segment fell 8% YoY to ₹1,586 crore.

Lighting segment margins expanded by 370 basis points to 12.6% as EBIT jumped 41% to ₹29 crore, aided by better product mix and operational efficiencies.

Butterfly Gandhimathi Appliances, its subsidiary, posted a 39% YoY jump in EBITDA to ₹13 crore, led by growth in mixer grinders and pressure cookers.

Despite the topline pressure, Crompton said it successfully repaid ₹300 crore worth of NCDs and remains net cash positive.

Shares of Crompton closed largely unchaged at ₹319.35 ahead of the results.