Shares of Crompton Greaves Consumer Electricals Ltd. fell to 52-week low after Q3 profit declined and missed analysts' estimates.
The company's third-quarter net profit fell 42.5% to Rs 85.25 crore, missing Bloomberg's estimate of Rs 1,697.16 crore. Its Ebitda margin declined 10.1% in the third-quarter of the financial year 2022-2023, as compared to 14.29% in the same quarter of the previous fiscal.
"Slow growth momentum of September continued in Q3 as the consumer demand remained weak owing to high retail inflation and price volatility. The anticipated festive demand was affected and the warmer winter further impacted the offtake of seasonal Appliances products," the company said in its exchange filing.
Also, the transition to the new BEE norms created an unstable and deferred primary demand for company's largest 'fans' business.
Crompton Greaves Consumer Electricals Q3 FY23 (Consolidated, YoY)
Revenue up 7.49% at Rs 1,516.2 crore (Bloomberg estimate: Rs 1,697.2 crore)
Ebitda down 24.38% at Rs 152.4 crore (Bloomberg estimate: Rs 221.4 crore)
Margins at 10.1% vs 14.29% (Bloomberg estimate: 13%)
Net profit down 42.5% at Rs 85.3 crore (Bloomberg estimate: Rs 143.1 crore)
Shares of the company fell 8.67% to its 52-week low of Rs 303.55, while the benchmark Nifty 50 declined 0.11%.
Total traded volume so far in the day stood at 12.2 times its 30-day average. The relative strength index at 14 implies that the stock maybe oversold.
Out of the 45 analysts tracking the company, 41 maintain a 'buy' rating, one recommends a 'hold' and three suggest to 'sell' the stock, according to Bloomberg data. The 12-month consensus price target implies an upside of 49.4%.
Source: Bloomberg, Exchange filing
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