Ranvir’s Portfolio

Crompton Greaves Consumer Electricals

Q2 FY25 results and concall highlights –

Revenues – 1896 vs 1782 cr, up 6 pc
Gross Margins @ 32.7 vs 31.3 pc
EBITDA – 203 vs 175, up 17 pc ( margins @ 10.7 vs 9.8 pc )
PAT – 128 vs 101 cr, up 27 pc ( margins @ 6.8 vs 5.7 pc )

Segment wise performance –

Electrical consumer durables ( ECD ) –

Revenues – 1393 vs 1238 cr, up 13 pc
EBIT – 206 vs 176 cr, up 18 pc ( margins @ 14.8 vs 14.2 pc )

Price increases and premiumisation in ECD portfolio led to margins improvement

Executed 42 cr worth Solar pump orders in Q2. Also continued growth in residential pumps led by new product launches

Witnessed strong growth in Mixer-Grinders portfolio

Built in Kitchen appliances recorded a revenue of 19 cr. Still operating in the EBIT negative territory ( although the losses have reduced considerably )

Lighting –

Revenues – 253 vs 238 cr
EBIT – 27 vs 25 cr ( margins @ 10.7 vs 10.5 pc )

Witnessed strong growth in ceiling panels and battens amid price erosion

Focusing on improving the range of higher Wattage and Premium products

Butterfly –

Revenues – 258 vs 308 cr ( down YoY, however, witnesses strong QoQ growth of 42 pc )
EBIT – 17 vs 20 cr, EBIT margins improved from 5.1 pc in Q1 to 8.9 pc in Q2

Company undertook a lot of business restructuring wef Q3 FY 24 wrt their butterfly brand. Business now getting back on track post the restructuring

Fans business grew by 5 pc, Crompton branded appliances ( like coolers, heaters, mixer-grinders ) and Pumps grew by 20 pc YoY

Have crossed sales for 100 cr in H1 in the solar pumps category. Plus the order book for the Solar pumps business continues to be strong

A&P spends stood @ 58 cr a jump of 70 pc over Q1 !!!

Company has taken price hikes in the Fans portfolio ( being the Mkt leader ). However, competition has till now refrained from taking up price hikes

Decorative ceiling panels is now company’s largest segment in the lighting business

In South India, Crompton and Butterfly’s kitchen appliances have different front ends and sales teams. Outside South India ( where Butterfly is not strong ), sales teams are same for both the brands. Back ends for both brands do share significant synergies

Company continues to be extremely bullish about their Solar Pumps business as the demand trends are extremely strong ( aided by a strong Govt push via Kusum scheme )

Company witnessed good festive demand for kitchen appliances during the festive period

Channel inventory remains @ normal levels

Disc: I keep trading in and out of this stock, biased, not SEBI registered, not a buy/sell recommendation