Crompton Greaves Consumer Electricals (CROMPTON) Q4 19/20 earnings summary

Executive summary

• FY20 consolidated revenue was ₹4,520.26 crore versus ₹4,478.91 crore; PAT rose 24% to ₹496.39 crore, supported by cost control, improved mix and lower tax expense.

• COVID-19 and the national lockdown sharply curtailed March sales, leaving lower collections and higher inventories; FY21 recovery was expected to begin in H2, subject to reopening and demand conditions.

• The five-pillar strategy emphasized product innovation, brand investment, wider distribution, digital tools and operational efficiency.

Financial highlights

• Consolidated revenue from operations rose to ₹4,520.26 crore from ₹4,478.91 crore; total income was ₹4,579.31 crore versus ₹4,526.92 crore.

• Consolidated PBT was ₹590.69 crore versus ₹559.84 crore; PAT was ₹496.39 crore versus ₹401.39 crore, a reported 24% increase.

• Consolidated basic EPS was ₹7.92 versus ₹6.40; diluted EPS was ₹7.85 versus ₹6.36.

• Standalone revenue from operations was ₹4,511.97 crore; PAT was ₹494.70 crore versus ₹402.52 crore, up 22.90%.

• Consolidated EBITDA margin expanded 30 bps to 13.3%; material margin improved 110 bps to 32.10%, reflecting mix and cost optimisation.

Outlook and guidance

• FY21’s first quarter was expected to be severely impacted by lockdown; management anticipated easing in Q2 and recovery from H2 as the economy reopened.

• Priorities were sales growth ahead of the market, operating profit growth at least in line with sales, and conversion of profits to cash.

• Plans included continued innovation and brand promotion, deeper distribution, rural and e-commerce expansion, and leveraging data and digital tools.

• Demand opportunities included rural electrification, affordable housing, premiumisation, energy-efficient products and solar pumps supported by the KUSUM programme.

• Cash conservation measures targeted non-essential and avoidable costs while preserving investment to support competitiveness and business continuity over the next 12–18 months.