Crompton Greaves Q2FY23 PAT falls -20.8% to Rs125.79 crore as input costs and inventory lock-ins subdue profits

26 Oct 2022 , 08:51 PM

Crompton Greaves reported 22.7% growth in total revenues for the September 2022 quarter on consolidated basis at Rs1,700cr.

Revenue fall was -8.77% in sequential terms. Crompton Greaves operates in the fast moving electrical goods (FMEG) segment.

In terms of revenues of its verticals; the electrical consumer durable segment was lower at Rs1,062 crore while the sales from lighting products was also lower at Rs269 crore.

The entire sales growth thrust came from the Rs368 crore sales thrust from the acquisition of Butterfly.

Consolidated Profit after tax (PAT) for September 2022 quarter was down -20.8% at Rs125.79cr but it was up by 3.95% on sequential basis.

Again, the operating profits for the electrical consumer goods and lighting products fell on yoy basis due to a spike in the cost of raw materials and inventory holding costs.

The entire surge in operating profits in the quarter came from the profits made by the newly added Butterfly Products. Net profit margins at 7.4% in Q2FY23 is lower compared to 11.5% in Q1FY22 but certainly better than the 6.5% NPM reported in Q1FY23.

Financial highlights for Sep-22 compared yoy and sequentially

	Crompton Greaves
Rs in Crore	Sep-22	Sep-21	YOY	Jun-22	QOQ
Total Income (Rs cr)	₹ 1,699.50	₹ 1,385.12	22.70%	₹ 1,862.94	-8.77%
Net Profit (Rs cr)	₹ 125.79	₹ 158.81	-20.79%	₹ 121.01	3.95%
Diluted EPS (Rs)	₹ 2.05	₹ 2.51		₹ 1.98
Net Margins	7.40%	11.47%		6.50%