Crompton Greaves Consumer Electricals (CGCE) is not doing well today; Opening 6% lower at Rs.311.90, the stock hit a new 52-week low at Rs.301.55 and is now trading around Rs.302.
On a 7% (YoY) rise in net sales at Rs.1516 crore, it posted a 41% decline in net profit at Rs.88 crore.
EBITDA was down 25% at Rs.152 crore while margins slipped from 14.3% to 10.1%.
The slow growth momentum of September continued in Q3 as the consumer demand remained weak owing to high retail inflation and price volatility. The anticipated festive demand was affected and the warmer winter further impacted the offtake of seasonal Appliances products. In addition, the transition of the largest business ‘Fans’ to new BEE norms created an unstable and deferred primary demand.
In the ‘Butterfly’ segment, mixer Grinders had a muted growth in and wet grinders faced challenges due to increase in GST rates from 5% to 18%.