(Reuters) -India’s Crompton Greaves Consumer Electricals reported a 43% slump in second-quarter profit on Thursday, as above-normal rainfall reduced demand for cooling products.
The Mumbai-based company’s consolidated net profit fell to 711.7 million rupees ($8.10 million) in the quarter, compared to last year’s profit of 1.25 billion rupees.
Revenue climbed 1% to 19.16 billion rupees year-on-year, outstripped by a 3.6% rise in expenses.
KEY CONTEXT
Like other appliance makers, Crompton Greaves, which commands a sizeable market share in fans, had muted demand for its summer portfolio of fans and coolers on account of the monsoon rains.
Margins also came under pressure due to persistent inflation in commodities and ongoing investments in marketing, the company said.
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 26.73 17.32 2.11 9.22 14.63 Buy 30 0.69 1.06
Consumer
Electricals
Blue Star 53.34 34.18 15.55 22.43 Hold 20 1.02 0.47
Voltas 46.42 35.97 2.61 11.09 22.75 Hold 35 0.98 0.51
Havells India 50.85 33.82 3.68 11.84 18.24 Buy 25 0.88 0.67
* The mean of analyst 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 TO SEPTEMBER STOCK PERFORMANCE
— All data from LSEG
— $1 = 87.8950 Indian rupees
(Reporting by Ananta Agarwal in Bengaluru; Editing by Harikrishnan Nair)
