Crompton Greaves Consumer Electricals (CROMPTON) Q4 15/16 earnings summary

Executive summary

• FY16 performance covered the consumer products business from 1 Oct 2015 after the demerger; comparative prior-period business figures were used for growth comparisons. Revenue growth was 11.2% on that comparison basis.

• Focus areas included consumer-led innovation, energy efficiency, premium products, distribution reach, supply-chain strength and process efficiency.

Financial highlights

• Revenue from operations was ₹1,811.68 crore for the period; profit before tax was ₹157.68 crore and profit after tax was ₹105.19 crore.

• Profit before exceptional items and tax was ₹171.61 crore; exceptional items totaled ₹13.93 crore, comprising ₹11.29 crore of demerger expenses and a ₹2.64 crore deposit write-off.

• Operating profit before corporate expenses and exceptional items was ₹246.52 crore, up 18.4% versus the comparable prior period; finance costs of ₹31.75 crore included servicing the ₹700 crore term loan.

• Net cash from operating activities was ₹175.71 crore; cash and bank balances at year-end were ₹90.00 crore.

Outlook and guidance

• Management expected an improving economy, contained inflation, a normal monsoon and higher infrastructure spending to support demand, including street and highway lighting.

• LED adoption, energy-efficient fans and pumps, solar-powered products, connected devices, government procurement programs, e-commerce and modern retail were identified as growth opportunities.

• Strategic priorities for the next five years included stronger consumer connection, valued innovation, improved product availability and service, supply-chain capability and operating efficiencies.