(Reuters) – India’s Crompton Greaves Consumer Electricals reported a bigger-than-expected rise in second-quarter profit on Thursday, boosted by increased sales of home appliances such as pumps and mixer grinders.
The company’s consolidated net profit rose 28.5% to 1.25 billion rupees ($14.80 million) in the quarter ended Sept. 30, beating analysts’ estimate of 1.22 billion rupees, per LSEG data.
Revenue from operations rose 6.4% to 18.96 billion rupees, with the electrical consumer durables (ECD) segment growing 12.5%.
“With pumps and appliances businesses delivering robust growth, ECD segment is developing new growth engines,” Managing Director and CEO Promeet Ghosh said.
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KEY CONTEXT
The July-September period is seasonally the weakest as demand for appliances wanes after the summer. This time, inflationary pressures also weighed on sentiment.
However, analysts said that sales for Crompton Greaves’ appliances remained steady, driven by product launches, increased focus on marketing and competitive prices.
Havells India and Polycab missed profit estimates for the quarter amid sluggish demand, while Voltas reported a bigger-than-expected profit.
PEER COMPARISION
Valuation (next 12 months) Estimates (next 12 months) Analysts’ sentiment
RIC PE EV/EBITDA Price/Sales Revenue growth Profit growth Mean # of Stock to Div
(%) (%) rating* analysts price target yield
** (%)
Crompton Greaves 35.98 24.31 2.54 12.86 29.05 Buy 32 0.79 0.78
Voltas 54.07 40.73 2.72 18.09 58.63 Hold 34 0.98 0.33
Havells India 56.63 37.97 4.48 15.75 23.77 Hold 23 0.83 0.56
Polycab India 40.99 29.60 4.01 19.31 18.87 Buy 26 0.85 0.47
* The mean of analysts’ ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** The ratio of the stock’s last close to analysts’ mean price target; a ratio above 1 means the stock is trading above the PT
JULY-SEPTEMBER STOCK PERFORMANCE
— All data from LSEG
–$1 = 84.4370 Indian rupees)
(Reporting by Nishit Navin in Bengaluru; Editing by Savio D’Souza)
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