(Reuters) -India’s Crompton Greaves Consumer Electricals posted a smaller-than-expected first-quarter profit, as weak demand for fans due to unseasonably cool weather weighed on sales.
The company’s consolidated profit fell 19.4% to 1.22 billion rupees ($13.9 million), missing analysts’ average estimates of 1.53 billion rupees, as per data compiled by LSEG.
Sales in the firm’s electric consumer durables segment, which accounts for more than three-fourths of total revenue, fell 8.1%.
This pushed overall revenue down 6.5% year-on-year to 19.98 billion rupees, below analyst estimates of 21.71 billion rupees. For further results highlights, click (Full Story). KEY CONTEXT
A shorter summer and unseasonal rains this year dented sales of cooling products, including fans, air coolers and air conditioners.
Peer Havells India also reported a 14% year-on-year drop in its electrical consumer durables business for the quarter ended June 30.
PEER COMPARISON
Valuation (next 12 Estimates (next 12 Analysts’ sentiment
months) months)
RIC PE EV/EBI Price/ Revenue Profit Mean No. of Stock to Div
TDA Sales growth (%) growth (%) rating* analyst price yield
s target** (%)
Crompton Greaves 29.85 19.31 2.26 10.73 17.44 Buy 31 0.75 0.93
Consumer
Electricals
Havells India 50.89 33.49 3.82 11.00 15.61 Buy 28 0.87 0.67
Voltas 43.23 33.10 2.40 9.39 15.55 Buy 34 0.94 0.53
TTK Prestige 37.99 25.77 NULL 9.81 15.48 Hold 4 0.96 0.95
* 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 PTAPRIL-JUNE STOCK PERFORMANCE
— All data from LSEG — $1 = 87.6700 rupees
(Reporting by Vijay Malkar in Bengaluru; Editing by Janane Venkatraman)
