Crompton Greaves Consumer Electricals reported a robust first quarter with double-digit growth across key segments, signalling a recovery from supply disruptions and a sustained demand rebound as supply chains stabilise.
Crompton Greaves Consumer Electricals said its first-quarter performance was lifted by double-digit growth across the group even as supply snarls dented sales, with the company reporting a clear rebound in demand once shortages eased.
According to the company’s latest earnings update, revenue rose 11.8% year on year to ₹2,235 crore, while earnings before interest, tax, depreciation and amortisation climbed 14.2% and profit after tax increased 15.2%. Managing director and chief executive Promeet Ghosh said the quarter was constrained by supply disruption that cost the company about ₹200 crore in sales, mainly in the electrical consumer durables business, but added that the situation had largely normalised by the end of June. That has helped set up a stronger start to the new quarter.
Fans remained a key driver. Crompton said its BLDC fan range grew about 45% during the quarter after five new launches, helping it extend share gains in ceiling fans. The company also said it continued to execute a lean inventory strategy, which supports return on capital employed and cash flow but leaves it more exposed when supply tightens.
Lighting was another bright spot, with revenue up 15.4% as both business-to-business and consumer demand improved. The consumer-facing segment saw margin gains, although precontracted prices weighed on the business-to-business side. Crompton said it was able to offset much of the inflationary pressure through pricing actions that covered roughly 80% of the cost increase, alongside tighter cost control.
Butterfly, the kitchen appliances arm, also posted a solid quarter. Revenue increased 14%, or 18% excluding sales to Crompton, as it gained traction in mixer grinders, pressure cookers and glass tops. The company said the brand is benefiting from a refresh programme and a planned major launch event, while its core retail, large-format retail and online channels are growing at more than 20%.
The solar rooftop business remains lumpy but increasingly important. Crompton said it has an order book of about ₹500 crore, with roughly ₹450 crore expected to be executed over the next six to eight months. The company added that government payments have been timely and that execution capacity has been ramped up, with more revenue recognition expected in the current and next quarter.
Ghosh said consumption remains “pretty decent”, arguing that higher prices may delay purchases but do not destroy demand for products that are only partly discretionary. On the outlook for pricing, he said the company does not currently see the need for another sharp round of increases, pointing to the effect of earlier price moves, operating leverage and cost discipline.
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