Crompton Greaves Consumer Electricals Ltd.'s June-quarter performance kept brokerages positive as EBITDA rose nearly 66% and margin expanded by more than four percentage points. Jefferies said the quarter was in line, supported by timely price increases and cost control, while Citi expects growth to benefit from recovery in sales lost during Q1, a favourable base and newer categories.
The brokerage outlook reflects the company's ability to manage inflation and supply disruptions. Jefferies said around 80% of inflation pressure has been passed on, while lean working capital management and cost controls also supported performance. Citi, meanwhile, said supply constraints masked underlying growth during the quarter.
Crompton Consumer reported higher profit, revenue and EBITDA in the June quarter, with operating profitability improving sharply from a year earlier.
Crompton Consumer Q1 Highlights (Consolidated, YoY)
- Revenue rose 16.9% to Rs. 2,335 crore from Rs. 1,998 crore.
- EBITDA increased 65.7% to Rs. 325 crore from Rs. 196 crore.
- EBITDA margin expanded to 13.9% from 9.8%.
- Net profit rose 14.8% to Rs. 140 crore from Rs. 122 crore.
Here's what brokerages are saying after Crompton Consumer announced Q1 Results
Jefferies
- Maintained 'Buy'; Target Price At Rs. 330
- Said the June-quarter performance was in line.
- Timely price increases, lean working capital management and cost control supported growth.
- Around 80% of inflation pressure has been passed on.
Citi
- Maintained 'Buy'; Target Price At Rs. 400
- Said supply constraints masked underlying growth during the quarter.
- Expects near-term growth to benefit from recovery in sales lost during Q1 and a favourable base.
- Newer categories are also expected to support growth.
- Execution remains a monitorable amid raw-material and supply-chain volatility.
Catch all the live updates on stock markets here.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.