Crompton Greaves Consumer Electricals Ltd reported a 17.69 percent decline in its consolidated net profit to Rs 130.71 crore for the second quarter that ended September 30, mainly due to weak consumer demand. The company had posted a net profit of Rs 158.81 crore in the July-September quarter a year ago, Crompton Greaves Consumer Electricals Ltd (CGCEL) said in a regulatory filing.
However, its revenue from operations increased 22.7 percent to Rs 1,699.50 crore during the quarter under review against Rs 1,385.12 crore in the year-ago period.
"CGCEL had a difficult quarter owing to an unfavorable base period and high retail inflation creating weak consumer demand. Its total expenses rose 31.57 percent to Rs 1,564.54 crore from Rs 1,189.09 crore a year ago," the company said in its earning statement.
Shantanu Khosla, MD, CCGEL said, "Consolidated Q2 delivered a revenue growth of 23 percent, aided by the Butterfly acquisition amidst an unfavorable base period and high retail inflation."
In the July-September quarter, CGCEL's revenue from the electric consumer durables segment revenue slipped 3.11 percent to Rs 1,062.23 crore compared to Rs 1,096.43 crore in Q2 FY22. Revenue from lighting products also fell 6.6 percent to Rs 269.62 crore against Rs 288.69 crore.
"Current quarter segment-wise growth was impacted due to the previous year's high base, driven by post-COVID pre-buying. Butterfly business continued to perform in line with plans; the Butterfly offline business grew in double digits, aiding gross margin improvement," the company said.
Revenue from its new subsidiary Butterfly, which it had acquired earlier this year, was at Rs 367.65 crore. Its consolidated revenue from operations in the first half (April-September) of the fiscal was Rs 3,562.44 crore. Its net profit for H1 was marginally up at Rs 256.66 crore.
"H1 registered a strong growth wherein consolidated revenue grew by 46 percent, and standalone Crompton grew by 21 percent. We continue to focus our efforts on restoring margins through accelerated cost savings, premiumization across segments, and appropriate pricing actions," Khosla said.