Crompton Greaves - Strong Free Cash Flow With Robust Balance Sheet: Motilal Oswal

Crompton Greaves’ products on display. (Source: BloombergQuint)

Crompton Greaves - Strong Free Cash Flow With Robust Balance Sheet: Motilal Oswal

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

Crompton Greaves Consumer Electricals Ltd.’s FY21 Annual Report focuses on the five-dimensional growth strategy adopted over the pandemic-affected year.

Launching new products and deepening the reach within existing product categories were among the key focus areas for the year gone by.

Here are the key highlights:

  • Under Project Unnati, the company saw cost savings worth Rs 1.5 billion, constituting 3.2% of FY21 sales (~3.1% of sales in FY20). Savings were seen across areas such as product design optimisation, in-house manufacturing, commercial negotiations, and ad spends.

  • While employee costs were up 8% YoY (~5% increase in employee count), other expenses declined 11% YoY, largely led by a 17% reduction in ad spends and sales promotions. These measures led to Ebitda margin expansion of 160 basis point YoY to 14.8%.

Click on the attachment to read the full report:

Motilal Oswal Crompton Greaves Annual Report Update.pdf

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