Crompton Greaves Pins Rs 1,000 Crore Revenue Hopes On E-Commerce, Quick Commerce Growth
The Crompton Greaves CFO highlighted that e-commerce and quick commerce are key contributors to its Rs 1,000 crore annual revenue.
Crompton Greaves Consumer Electricals Ltd. expects to double its revenues in the next five years on the back of booming business from e-commerce, quick commerce, and B2C segments, according to the company’s Chief Financial Officer Kaleeswaran Arunachalam.
In an interview with NDTV Profit, Arunachalam said that Crompton Greaves expects quick commerce to play a big role in its business while e-commerce is already a significant contributor to its revenues.
“We expect our business to at least double from where we are today in the next five to six years on revenue,” he said.
Greater revenues will also mean better operating leverage, the Crompton Greaves CFO explained.
“That will also lead to operating leverage. Our current Ebitda margin when we started our journey was about 10%. We are already trending at about 11%,” he said.
“We see an opportunity to improve further from here also when we look at the medium and long patterns,” Arunachalam added.
In the last two to three years, the e-commerce business has “multiplied and grown,” he noted.
“Close to about Rs 1,000 crore of business is coming in e-commerce, Crompton plus Butterfly together. We expect this to only go ahead from a consumer demand perspective,” the CFO said.
He revealed that the quarterly run rate from the e-commerce business was around Rs 200 crore, and the company expects to end the year with close to Rs 1,000 crore in revenue
Arunachalam mentioned that the growing quick commerce segment is also expected to play a big role in the company’s business.
“We have very recently started listing our products in some of the quick commerce platforms, but it is a very nascent journey right now. But we do see the e-commerce plus quick commerce growth trajectory to continue,” he said.
Calling e-commerce “disruptive,” Arunachalam noted that his company had grown in multiples and not just percentages, and there is no reason for the trend to not continue in the long run.
The third emerging segment is B2C, where Crompton Greaves is mulling its entry, the CFO noted.
“We don't see any reason for this platform consumption to come down,” Arunachalam told NDTV Profit.
Shares of Crompton Greaves Consumer Electricals Ltd. were trading 0.24% higher at 396.40 as of 12:04 p.m., compared to 0.09% decline in Nifty 50 at 23,928.75.
