Crompton Greaves - Strong Free Cash Flow With Robust Balance Sheet: Motilal Oswal

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Motilal Oswal Report

Crompton Greaves Consumer Electricals Ltd.’s FY21 Annual Report focuses on the five-dimensional growth strategy adopted over the pandemic-affected year.

Launching new products and deepening the reach within existing product categories were among the key focus areas for the year gone by.

Here are the key highlights:

• Under Project Unnati, the company saw cost savings worth Rs 1.5 billion, constituting 3.2% of FY21 sales (~3.1% of sales in FY20). Savings were seen across areas such as product design optimisation, in-house manufacturing, commercial negotiations, and ad spends.

• While employee costs were up 8% YoY (~5% increase in employee count), other expenses declined 11% YoY, largely led by a 17% reduction in ad spends and sales promotions. These measures led to Ebitda margin expansion of 160 basis point YoY to 14.8%.

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