Crompton Greaves Consumer posts 23.3% rise in profit at Rs70.8 crore
Crompton Greaves Consumer Electricals Ltd on Thursday reported a 23.3% year-on-year jump in net profit to Rs70.8 crore in the quarter ended September on the back of a 15.9% rise in revenue to Rs959.7 crore.
Shantanu Khosla, managing director, attributed the company’s revenue growth to higher volumes, while giving credit to cost cutting measures and disciplined marketing spends to the jump in profitability.
“The quarter has seen growth coming back with notable share gain in our two biggest businesses viz fans & lighting. Our consumption market share is up in both fans and LED lights,” Khosla said.
Khosla added that the increase in Crompton’s market share in the fan segmented can be attributed to its innovative anti-dust fans, while that in the lighting segment was largely a function of “cost optimisation in LED to drive strong B2C lighting growth”.
He, however, also acknowledged the slowdown in the housing market and sounded skeptical on the goods and services tax (GST). “This was the first quarter after GST roll-out. Market environment remains challenging amidst muted housing growth & things still stabilizing in the GST regime,” Khosla said.
A breakup of the performance of Crompton’s two segments during the quarter reveals that while the larger electric consumer durables recorded a muted revenue growth of 2.4% year-on-year, the much smaller lighting products segment grew 15.5% to Rs337.8 crore.