Crompton Greaves Q2 PAT jumps 27%; stock zooms ~6%

18 Nov 2024 , 03:39 PM

Crompton Greaves Consumer Electricals Ltd shares rose more than 6% on Monday, November 18, after the business reported a robust increase in revenue and net profit in the second quarter of FY25, exceeding market estimates.

The company’s September quarter success was principally driven by double-digit growth in its Electrical Consumer Durables (ECD) segment and considerable margin expansion in its Butterfly division.

In a stock exchange filing, the company reported a 27% increase in consolidated profit after tax (PAT) to ₹128 Crore in the second quarter from ₹101 Crore the previous year.

The company’s consolidated sales increased by 6% to ₹1,896 Crore from ₹1,782 Crore in the same period last year. This growth was led by high sales of appliances and pumps in the ECD area, which saw a 12.5% increase in revenue. 

Gross margin increased by 170 basis points (bps) to 32.7%, mainly due to pricing increases for fans. The company’s EBITDA margins improved to 10.7%, up 90 basis points from 9.8% the prior year. This outperformed market estimates, which had estimated EBITDA margins of 10%.

The company stated that Butterfly’s, the kitchen appliances brand, improved operational efficiency and cost control, resulting in a considerable margin expansion and contributing to the overall improvement in the company’s profitability.

The ECD segment’s revenue growth of 12.5% was driven by high demand for appliances and pumps. Margins in this segment remained stable.

At around 3.34 PM, Crompton Greaves was trading 3.49% higher at ₹384, against the previous close of ₹371.05 on NSE. The counter touched an intraday high and low of ₹397.55, and ₹374.35, respectively.

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