Crompton Greaves Consumer Electricals (CROMPTON) Q4 21/22 earnings summary

Executive summary

• FY22 revenue from operations rose 13% YoY to ₹5,373.20 crore standalone; PAT was ₹593.48 crore, versus ₹604.74 crore in FY21.

• Consolidated revenue was ₹5,394.11 crore; PAT was ₹578.38 crore, including ₹12.97 crore of exceptional Butterfly acquisition costs.

• Double-digit growth, strong profitability and cash generation were supported by fans, premiumisation, cost savings and channel expansion, despite pandemic disruption and commodity inflation.

Financial highlights

• Standalone total income was ₹5,453.10 crore, up from ₹4,825.58 crore; PBT rose to ₹763.15 crore from ₹707.72 crore.

• Consolidated PBT was ₹751.54 crore versus ₹723.63 crore; reported PAT declined to ₹578.38 crore from ₹616.65 crore.

• Consolidated operating cash flow was ₹723.38 crore versus ₹830.29 crore; investing outflow was ₹1,722.88 crore, largely reflecting the subsidiary investment.

• Project Unnati delivered ₹203 crore in cost savings; standalone R&D expenditure was ₹48.59 crore.

Outlook and guidance

• Priorities include continued R&D, innovative and energy-efficient products, brand investment, and wider distribution across rural, modern-trade and e-commerce channels.

• FY23 Indian GDP growth was projected at 7.5%; management expected pump demand to recover after FY22’s prolonged monsoon and anticipated Butterfly synergies.

• Focus areas include strengthening lighting and appliances, expanding smart and connected products, and pursuing organic opportunities and new adjacencies.