Crompton Greaves Consumer Electricals (CROMPTON) Q4 16/17 earnings summary

Executive summary

• First full post-demerger operating year; comparable sales rose 10.8% and operating profit rose 22.1% YoY.

• FY17 revenue was ₹3,975.90 crore, PAT ₹290.69 crore and EPS ₹4.64; proposed dividend ₹1.50 per share.

Financial highlights

• Revenue from operations ₹3,975.90 crore; total income ₹3,995.40 crore; comparable revenue growth 10.8% YoY.

• Operating profit before corporate expenses and exceptional items ₹592.97 crore, up 21.9% on the stated comparison basis.

• PBT ₹430.62 crore after ₹2.52 crore exceptional demerger expenses; PAT ₹290.69 crore.

• Basic EPS ₹4.64 and diluted EPS ₹4.63, versus ₹3.36 for the shorter prior-year period.

Outlook and guidance

• FY18 outlook positive across Electrical Consumer Durables and Lighting; infrastructure spending expected to support streetlight and highway-light demand.

• LED battens and panels expected to drive a higher share of Lighting volume growth in FY18; competitive pricing remains important to market growth.

• Energy-efficient products across fans, pumps, coolers and water heaters, plus connected devices, are identified as growth opportunities; home automation expected to remain premium-led in the medium term.

• GST-driven supply-chain realignment aims to improve efficiency and customer service, while migration may cause temporary disruption.