Q1 2027 Crompton Greaves Consumer Electricals Ltd Earnings Call Transcript
Key Points
- Crompton Greaves Consumer Electricals Ltd (BOM:539876) delivered double-digit revenue growth of 11.8% Y-o-Y to INR2,235 crores, with EBITDA growing 14.2% and PAT up 15.2%.
- The company's BLDC fan portfolio grew approximately 45% during the quarter, supported by the launch of 5 new BLDC fans, and it continued to gain market share in ceiling fans.
- The Lighting business showed strong momentum with 15.4% Y-o-Y revenue growth, driven by both B2B and B2C segments, and the B2C segment saw margin expansion.
- Butterfly delivered strong results with revenue up 14% (18% excluding internal sales to Crompton), driven by market share gains in mixer grinders, pressure cookers, and glass tops.
- The company maintained disciplined pricing interventions, covering approximately 80% of inflationary pressures, while expanding EBIT margins in the ECD segment to 13.5%.
- The solar rooftop business has a robust order book of INR500 crores, with execution ramping up and the government paying on time, positioning the company for significant revenue recognition in Q2.
- The company is making strategic leadership additions and brand transformation efforts, with a major brand launch event planned, which is expected to drive future growth.
- Crompton Greaves Consumer Electricals Ltd (BOM:539876) faced significant supply disruptions during the quarter, leading to an estimated loss of sales of around INR200 crores, primarily in the ECD category.
- The company experienced commodity cost and availability pressures due to global events, which required timely pricing interventions and impacted the overall business environment.
- The Lighting business witnessed margin contraction in the B2B segment due to precontracted prices, partially offsetting the margin expansion in B2C.
- The company's lean inventory management approach, while beneficial for ROCE, left it vulnerable to supply chain disruptions, as it did not have sufficient base inventory to cover the volatility.
- The solar rooftop business saw modest revenue recognition in Q1 due to installation-based revenue recognition, with the bulk of the order book execution expected in Q2, indicating a lumpy revenue pattern.
- The company noted that some competitors did not follow through with similar price increases, potentially benefiting from low-cost inventory, which could create competitive pressure in the near term.
- Butterfly's growth was impacted by gas cylinder issues and lower off-take of glass tops, and its induction cooktop category remains a relatively small portion of its portfolio, limiting its benefit from category tailwinds.
So thanks, Vishal. On behalf of ICICI Securities, we welcome you all to Q1 FY27 results conference call of Crompton Greaves Consumer Electricals Limited. We have with us today senior management represented by Mr. Promeet Ghosh, Managing Director and Chief Executive Officer; Mr. Kaleeswaran Arunachalam, Chief Financial Officer; Mr.
Sachin Phartiyal, Business Head, Home Electricals; Mr. Shaleen Nayak, Business Head, Lighting, Solar Rooftops and Wires; Ms. Swetha Sagar, Chief Business Officer, Butterfly Gandhimathi Appliances; Mr. Ruchir Jain, Head, Investor Relations, Corporate Strategy, FP&A; Mr. Rishabh Jain, Deputy General Manager, Investor Relations; and Mr. Anand Kumar, Head of Pumps and Kitchen Appliances.
Now I hand over the call to Promeet sir for his initial comments on the quarterly performance, and then we will open the floor for question-and-answer session. Thanks, and over to you, Promeet, sir.
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