BENGALURU (Reuters) – India’s Crompton Greaves Consumer Electricals reported a smaller-than-expected rise in third-quarter profit on Wednesday, hurt by subdued demand for its home appliances and rising raw material costs.
The company’s consolidated net profit rose 0.9% to 859.9 million rupees ($10.4 million) for the three months ended Dec. 31, well below analysts’ estimate of 999.5 million rupees, as per LSEG data.
Revenue was up 11.6%. However, expenses rose 12.2%, mainly due to the purchase of components.
For further results highlights, click here: [FWN3EZ15D]
KEY CONTEXT
Persistent domestic inflation has resulted in consumers curtailing discretionary spending, leading to weak growth across various consumer segments, according to analysts.
Havells India reported marginal profit growth for the quarter as demand for its wires and cables just about helped offset a slowdown in sales of its consumer products.
PEER COMPARISON
Valuation (next Estimates (next 12 Analysts’ sentiment
12 months) months)
RIC PE EV/EBITD Revenue Profit Mean # of Stock to Div yield
A growth% growth% rating* analysts price (%)
target**
Crompton Greaves 28.82 20.37 11.75 25.85 Buy 32 0.85 1.05
Consumer Electricals
Havells India 54.33 36.10 13.57 27.99 Buy 19 0.95 0.55
V Guard Industries 40.54 25.90 13.51 33.75 Buy 18 0.95 0.42
Polycab India 33.89 22.86 15.65 15.87 Buy 23 0.85 0.46
* Mean of analysts’ ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** Ratio of the stock’s last close to analysts’ mean price target; a ratio above 1 means the stock is trading above the PT
OCTOBER-DECEMBER STOCK PERFORMANCE
— All data from LSEG
$1 = 83.0211 Indian rupees
(Reporting by Navamya Ganesh Acharya in Bengaluru; Editing by Savio D’Souza)
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