Crompton Greaves Consumer Electricals Ltd. Announces its Results for Q4 & FY24

ewn24 news choice of himachal 18 May,2024 12:21 pm

Highest-ever standalone quarterly revenue at Rs. 1,797 cr;

ECD Q4 Revenue growth at 14.3% YoY and EBIT margin at 16.7%

Crossed milestone of selling 2 cr+ fans in the year

Lighting business growth on track with improving margins;

In Dow Jones Sustainability Indices ranked 7th globally (Household Durables)

Crompton Greaves Consumer Electricals Ltd. ('Company'), India's leading Consumer Durables player, reported its standalone & consolidated financials for the fourth quarter and financial year ended 31st March 2024.

Crompton 2.0 at work

Continued execution of Crompton 2.0 tenets resulted in strong revenue growth and robust profitability with stepped up investments behind brand, innovation and people. The focus on premiumisation through new product launches led to improved saliency across categories. High impact campaigns were executed across categories to drive brand awareness. Alternate channels continue to consistently deliver superior growth wherein E-com recorded highest quarterly revenue with 75% YoY growth in Q4.

Q4 FY24 performance

Highest ever quarterly standalone revenue at Rs. 1,797 cr (12% YoY growth) and robust EBIT margin of 11.5% (12.3% adj for EPR)

Consolidated revenue for the quarter at Rs. 1,961 cr and EBIT at Rs. 169 cr

FY24 performance

Standalone revenue at Rs. 6,388 cr (10.0% YoY growth); EBIT margin at 9.8%

Strong OCF generation of Rs. 796 cr with 130% PBT conversion ratio (vs 72% last year)

Consolidated revenue at Rs. 7,313 cr; EBIT at Rs. 585 cr

The Board has recommended a dividend of Rs. 3 per share

Q4 segment performance

Consistently strong Q4 ECD performance with revenue growth of 14.3% YoY and EBIT margin of 17.2% (excluding EPR impact)

Broad-based performance across categories - 13% YoY growth in Fans, 9% YoY in Pumps & 27% YoY in Appliances. We crossed the milestone of selling more than 2 cr fans during the year, with double- digit volume growth.

Executed several solar pump orders with total empanelment of Rs.122 cr during the year

Crossed milestone of 10 lakh units of mixer grinders in FY 24 leading to strong growth of 39% in small domestic appliances

Alternate channels continue to be a growth driver with 31% YoY growth in Q4 led by E-commerce

Pricing actions, premiumisation and mix improvement resulted in EBIT margin improvement from 12.7% in Q1 to 17.2% (excluding EPR Impact) in Q4

Lighting on growth trajectory; Q4 revenue growth of 0.9% YoY amidst persistent price erosion; FY24 EBIT margin expanded by 170 bps YoY to 11.2% (excluding EPR impact)

Healthy volume growth in B2C lighting categories such as ceiling lights, battens and accessories

B2B segment demonstrated strong growth during the quarter led by streetlight and industrial segments; we secured large projects from NHAI, TCS, JSW, Megha Engineering & Infrastructure Ltd.

Butterfly Gandhimathi Appliances Ltd. revenue declined by 11% YoY

Revenue and profitability impacted by one-time settlements and extraordinary items

Core categories revenue sustained along with stable market share and regional chain stores continued to grow for the fourth consecutive quarter

New product launches and premiumization contributed substantially to Q4 revenue

Subdued EBIT margins was primarily due to stepped up investments in marketing activities (2.4x spend), crystallisation of full year Extended Producer Responsibility (EPR) liability of Rs 1.2 cr, reorganization of bottle and flasks sourcing and certain one-time settlements with channel partners.

Commenting on the CGCEL's performance, Promeet Ghosh, MD & CEO, said, "We launched Crompton 2.0 in June'23 which outlined our renewed focus towards accelerating revenue growth which is progressing well and translating into healthy margins. We delivered strong performance in ECD with double-digit growth for the third consecutive quarter with robust improvement in industry leading EBIT margins. The lighting business is showing signs of stabilization with revenue growth in H2 despite price erosion. We expect the intense summer season and uptick in demand for home & kitchen appliances to support the growth momentum while we continue to investment in growth initiatives."

Q4 Standalone Financials

Particulars (Rs. Cr)

Q4 FY24

Q4 FY23

Y-o-Y

Q3 FY24

Q-o-Q

Revenue

1,797

1,604

12%

1,458

23%

Material Margin

576

492

17%

468

23%

Material Margin (%)

32.0%

30.7%

+130 bps

32.1%

-10 bps

EBITDA

225

196

15%

147

53%

EBITDA Margin (%)

12.5%

12.2%

+30 bps

10.1%

+240 bps

PAT

161

132

22%

69%

PAT Margin (%)

9.0%

8.2%

+80 bps

6.5%

+250 bps

Q4 Standalone Financials (Segment)

Particulars (Rs. Cr)

Q4 FY24

Q4 FY23

Y-o-Y

Q3 FY24

Q-o-Q

ECD

Revenue

1,516

1,326

14%

1,209

25%

EBIT

253

218

16%

164

54%

EBIT Margin (%)

16.7%

16.4%

13.6%

Lighting

Revenue

281

278

249

13%

EBIT

-18%

-10%

EBIT Margin (%)

8.9%

10.9%

11.2%

FY24 Standalone Financials

Particulars (Rs. Cr)

FY24

FY23

Y-o-Y

Revenue

6,388

5,809

10%

Material Margin

1,975

1,800

10%

Material Margin (%)

30.9%

31.0%

-10 bps

EBITDA

689

671

EBITDA Margin (%)

10.8%

11.6%

-80 bps

PAT

466

476

-2%

PAT Margin (%)

7.3%

8.2%

-90 bps

FY24 Standalone Financials (Segment)

Particulars (Rs. Cr)

FY24

FY23

Y-o-Y

ECD

Revenue

5,392

4,756

13%

EBIT

775

789

-2%

EBIT Margin (%)

14.4%

16.6%

Lighting

Revenue

996

1,054

-5%

EBIT

105

100

EBIT Margin (%)

10.6%

9.5%

Q4 Butterfly Financials

Particulars (Rs. Cr)

Q4 FY24

Q4 FY23

Y-o-Y

Q3 FY24

Q-o-Q

Revenue

166

187

-11%

238

-30%

Material Margin

-31%

-39%

Material Margin (%)

30.2%

38.9%

34.3%

EBITDA

-20

EBITDA Margin (%)

-11.9%

4.2%

1.0%

PAT

-20

-2

PAT Margin (%)

-11.9%

0.8%

-0.9%

FY24 Butterfly Financials

Particulars (Rs. Cr)

FY24

FY23

Y-o-Y

Revenue

931

1,057

-12%

Material Margin

338

388

-13%

Material Margin (%)

36.2%

36.8%

EBITDA

-72%

EBITDA Margin (%)

2.9%

9.1%

PAT

-86%

PAT Margin (%)

0.8%

4.9%

Consolidated Financials

Particulars (Rs. Cr)

Q4 FY24

Q4 FY23

Y-o-Y

Q3 FY24

Q-o-Q

Revenue

1,961

1,791

1,693

16%

Material Margin

626

565

11%

550

14%

Material Margin (%)

31.9%

31.5%

32.5%

EBITDA

204

211

-4%

150

36%

EBITDA Margin (%)

10.4%

11.8%

8.8%

PAT

133

132

56%

PAT Margin (%)

6.8%

7.3%

5.0%

Particulars (Rs. Cr)FY24FY23Y-o-Y Revenue 7,313 6,870 6% Material Margin 2,313 2,189 6% Material Margin (%) 31.6% 31.9% EBITDA 714 770 -7% EBITDA Margin (%) 9.8% 11.2% PAT 442 476 -7% PAT Margin 6% 6.9%