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Shares of Crompton Greaves Consumer Electricals Ltd surged more than 6% on Monday, November 18, after the company reported a strong growth in revenue and net profit in the second quarter of FY25, beating market expectations.
The company's September quarter performance was primarily driven by double-digit growth in its Electrical Consumer Durables (ECD) segment and significant margin expansion in its Butterfly business.
In a stock exchange filing, the company said that its consolidated profit after tax (PAT) witnessed a 27% at ₹128 crore in the second quarter from ₹101 crore a year ago.
The company's consolidated revenue stood at ₹1,896 crore, up 6% from ₹1,782 crore in the same period last year. This growth was driven by strong sales in appliances and pumps within the ECD segment, which recorded a 12.5% increase in revenue.
Gross margin expanded by 170 basis points (bps) to 32.7%, likely supported by price hikes for fans. The company’s EBITDA margins improved to 10.7%, rising by 90 bps compared to 9.8% in the previous year. This exceeded market expectations, which had pegged EBITDA margins at 10%.
The ECD segment's 12.5% revenue growth was attributed to strong demand for appliances and pumps. Margins in this segment remained steady.
The company said that Butterfly's, the kitchen appliances brand, improved operational efficiency and cost management led to a significant margin expansion, contributing to the overall improvement in the company’s profitability.
The stock rallied up to 6.68% to hit an intraday high of ₹386 apiece on the BSE in early trade on Monday, November 18.
Market analysts attributed the rally to the company’s ability to navigate headwinds and achieve margin improvements despite a competitive environment.
The rally in the stock price has lifted the company's market capitalisation to ₹24,980 crore.
Crompton Greaves were trading at 6.01% higher at ₹393.5 apiece on the BSE at around 10:15 am.
The company's September quarter performance was primarily driven by double-digit growth in its Electrical Consumer Durables (ECD) segment and significant margin expansion in its Butterfly business.
In a stock exchange filing, the company said that its consolidated profit after tax (PAT) witnessed a 27% at ₹128 crore in the second quarter from ₹101 crore a year ago.
The company's consolidated revenue stood at ₹1,896 crore, up 6% from ₹1,782 crore in the same period last year. This growth was driven by strong sales in appliances and pumps within the ECD segment, which recorded a 12.5% increase in revenue.
Gross margin expanded by 170 basis points (bps) to 32.7%, likely supported by price hikes for fans. The company’s EBITDA margins improved to 10.7%, rising by 90 bps compared to 9.8% in the previous year. This exceeded market expectations, which had pegged EBITDA margins at 10%.
The ECD segment's 12.5% revenue growth was attributed to strong demand for appliances and pumps. Margins in this segment remained steady.
The company said that Butterfly's, the kitchen appliances brand, improved operational efficiency and cost management led to a significant margin expansion, contributing to the overall improvement in the company’s profitability.
The stock rallied up to 6.68% to hit an intraday high of ₹386 apiece on the BSE in early trade on Monday, November 18.
Market analysts attributed the rally to the company’s ability to navigate headwinds and achieve margin improvements despite a competitive environment.
The rally in the stock price has lifted the company's market capitalisation to ₹24,980 crore.
Crompton Greaves were trading at 6.01% higher at ₹393.5 apiece on the BSE at around 10:15 am.
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