Crompton Greaves Consumer Electricals (CROMPTON) Q4 17/18 earnings summary

Executive summary

• FY18 delivered comparable revenue growth of 8.4% and PBT growth of 14.2%; July 2017–March 2018 comparable revenue growth was 13.4% after GST-related disruption in Q1.

• Strategic priorities remained brand, portfolio, go-to-market, operational and organisational excellence, with emphasis on faster execution and converting profits to cash.

Financial highlights

• Revenue from operations was ₹4,105.12 crore versus ₹4,016.67 crore in FY17; total income was ₹4,135.87 crore.

• PBT was ₹485.44 crore, up 14.2%; PAT rose to ₹323.79 crore from ₹283.17 crore.

• EBITDA was ₹562 crore; cash generated from operations was ₹497 crore; dividend per share was ₹1.75.

Outlook and guidance

• The industry outlook was described as robust, supported by infrastructure spending, improving economic forecasts and consumer demand; real estate remained a lagging growth factor.

• Commodity input costs and interest rates could face pressure from US dollar strength; future growth also depends on commercialising emerging technologies and relevant product propositions.

• Air 360 fans and TRICOOL coolers were slated for broader market development in the coming year, with further consumer-focused launches planned across categories.