Q4 Results: Tepid Fan Business Pulls Down Crompton Greaves’ Margin

Crompton Greaves Consumer Electricals Ltd.’s margin for the quarter ended March shrank due to muted demand for fans, according to its Managing Director Shantanu Khosla.

“The spike in commodity prices and the extended winters temporarily impacted the fan business in the three-month period,” Khosla told BloombergQuint, adding that demand in the fan business is also bouncing back in the ongoing quarter. “We believe commodity cost spike is largely behind us, and we should recover those margin moving ahead.”

Other Highlights:

• Not seeing overall demand slowdown
• Investing in capital utilisation, in-housing table fan manufacturing
• LED business performed well

Q4 Earnings Highlights (YoY):

• Revenue rises 7.2 percent to Rs 1,206.9 crore
• Net profit jumps 36.1 percent to Rs 140.5 crore
• Ebitda up 1.6 percent at Rs 167.1 crore
• Margin contracts to 13.8 percent from 14.6 percent
• Other income rises 56 percent at Rs 17 crore

Watch the full conversation here: