Crompton Greaves Consumer Electrical Ltd's Q3FY19 standalone net profit rises 14.68% yoy to Rs79.70cr : In-line with Estimates

The company’s standalone revenue stood at Rs1,030.30cr, up 9.82% yoy but down 0.73% qoq.

Jan 30, 2019 08:01 IST India Infoline Research Team

Crompton Greaves Consumer Electrical Ltd Q3FY19

Standalone Results Q3FY19: (Rs. in cr)

Q3FY19 YoY (%)
Revenue 1,030.3 9.8
EBITDA 126.1 8.2
EBITDA Margin (%) 12.2 [18]
Net Profit 79.7 14.6
***EBITDA margin change is bps
Crompton Greaves Consumer Electricals’ (CGCE) Q3FY19 numbers were broadly in-line with the estimates. Sales in the quarter grew 9.8% yoy to Rs1,030.3cr, in-line with the estimate. Gross margin for the quarter contracted by 135bps yoy. Thus, EBITDA grew by 8.2% yoy to Rs126.1cr with an EBITDA margin of 12.2% (against an estimate of 11.6%). Aided by the significant jump in other income, PAT reported 14.6% yoy growth to Rs79.7cr against our estimate of Rs78cr.
  • Revenue growth was largely driven by 16.3% yoy increase in Electric Consumer Durables (ECD) segment against our estimate of 17%. Lighting Products (LP) business, on the contrary, reported 2.4% yoy decline in revenue.
  • ECD’s sales came at Rs711.6cr (69% of revenue), while LP reported Rs318.8cr (31% of revenue) for the quarter under consideration.
  • The healthy growth in ECD segment was driven by the launch of decorative fans and geyser portfolio coupled with strong implementation of Go-to-market initiatives.
  • ECD segment’s EBIT grew 19.4% yoy to Rs132.7cr with marginal expansion in EBIT margin by 47bps yoy to 18.7%.
  • LP EBIT declined by 37.5% yoy to Rs28.2cr with sharp contraction in EBIT margin by 499bps to 8.9%.
  • Other income jumped 87% yoy Rs12.4cr, while finance cost declined by 5.1% to Rs15cr on yoy basis.

Technical View:

Crompton Greaves Consumer Electrical Ltd ended at Rs. 215, down by 11.25 points or 4.97% from its previous closing of Rs. 226.25 on the BSE.
The scrip opened at Rs. 223.75 and touched a high and low of Rs. 223.75 and Rs. 211.05 respectively. A total of 6,28,066 (NSE+BSE) shares were traded on the counter. The stock traded above its 200 DMA.

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