Crompton Greaves Consumer Electricals (CROMPTON) Q4 20/21 earnings summary

Executive summary

• FY21 delivered resilient growth despite lockdown disruption, with standalone total income of ₹4,825.58 crore and PAT of ₹604.74 crore, versus ₹4,570.84 crore and ₹494.70 crore in FY20.

• Consolidated revenue from operations rose 6.3% to ₹4,803.51 crore; consolidated PAT increased 24% to ₹616.65 crore, supported by ECD growth and cost controls.

• Priorities remain innovation, premiumisation, distribution expansion, digitalisation and operating efficiency; second-wave disruption and commodity inflation are key near-term challenges.

Financial highlights

• Standalone revenue from operations was ₹4,749.95 crore, up 5.3% YoY; PBT ₹707.72 crore and PAT ₹604.74 crore, up from ₹588.27 crore and ₹494.70 crore.

• Consolidated revenue from operations was ₹4,803.51 crore vs ₹4,520.26 crore; PBT ₹723.63 crore vs ₹590.69 crore; PAT ₹616.65 crore vs ₹496.39 crore.

• Consolidated EBITDA margin expanded 200 bps YoY to 16.6%; material margin contracted 10 bps as commodity inflation was partly offset by savings and Q4 pricing actions.

• Standalone operating cash flow rose to ₹814.92 crore from ₹421.07 crore; cash and cash equivalents ended FY21 at ₹252.99 crore vs ₹22.97 crore.

Outlook and guidance

• Investment focus: R&D and differentiated value-added products, technology-enabled processes, stronger distribution and a rural/rurban sales organisation.

• Growth priorities include fans and pumps, a stronger lighting business, appliances led by water heaters, mixer grinders and coolers, and agricultural pumps.

• Management expects the second COVID wave and higher commodity prices to challenge performance; liquidity, surplus cash and operating efficiencies are intended to protect profitability and meet obligations.

• Plans include expanding smart-IoT, energy-efficient, sanitisation and purification offerings; organic opportunities may be evaluated using balance-sheet cash.