Crompton Greaves Consumer Electricals Q3 Preview: Net profit likely to rise 20%; margins to remain subdued

Crompton Greaves Consumer Electricals will announce its Q3 results on Wednesday, February 14. Zee Business analysts expect the results to be mixed owing to a low base. Analysts estimate the consolidated net profit to rise 20 per cent year-on-year (YoY) to Rs 106 crore against Rs 88 crore logged in the corresponding quarter of the previous year. 

Meanwhile, the revenue is expected to grow 17 per cent YoY to Rs 1,781 crore, up from Rs 1,759 crore registered a year ago. Furthermore, analysts peg the earnings before interest, tax, depreciation, and amortisation (EBITDA) at Rs 178 crore for the quarter that ended December 31 against Rs 152 crore a year ago, which implies a 17 per cent increase. 

Analysts expect the margins to remain muted at 10 per cent YoY. Further, double-digit growth is expected in electrical consumer durables (ECD), and pricing pressure is expected in the lighting business. On the other hand, the impact of weakness will be visible in Butterfly Gandhimati's (BGAL) business, in which Crompton holds a controlling stake.

Demand outlook and updates on new category announcements are key monitorables. 

Crompton Greaves Consumer Electricals Q2 results 

Home appliance maker Crompton Greaves Consumer Electricals reported a consolidated net profit of Rs 100.87 crore for the September quarter of FY24. The company's consolidated revenue from operations stood at Rs 1,782.27 crore.

Crompton Greaves Consumer Electricals share price: Past performance 

Since February 2023, the stock has lost over 5 per cent, underperforming Nifty50's rise of over 22 per cent. Shares of Crompton Greaves Consumer Electricals closed 0.49 per cent or Rs 1.4, higher at Rs 285.45 apiece on BSE. 

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