Crompton Greaves Q4FY25: Revenue Up 5.1%, Profit Jumps 23%

Crompton Greaves Consumer Electricals Ltd. has reported a significant surge in net profit for the fourth quarter ended March 31, 2025, demonstrating robust performance across key segments. The leading consumer electricals company saw its consolidated net profit climb by approximately 23% year-on-year (YoY), reaching ₹169.5 crore compared to ₹138.4 crore in the corresponding period last year.

Revenue from operations also registered a 5.1% YoY increase, rising to ₹2,060.6 crore from ₹1,961 crore in Q4 FY24. This top-line growth was accompanied by a notable expansion in profitability margins. Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) jumped nearly 30% to ₹264.4 crore from ₹203.6 crore in the year-ago quarter. Consequently, the EBITDA margin expanded to 12.8% from 10.4%, indicating improved operational efficiency.

Segmental Performance and Growth Drivers

The quarter's growth was propelled by "robust demand" in solar pumps and appliances, particularly mixer grinders and air coolers. The Electrical Consumer Durables (ECD) segment saw a 6% YoY growth in Q4 FY25, primarily driven by pumps and appliances. For the full fiscal year FY25, the ECD segment posted an 11% YoY revenue increase, also supported by growth in pumps and appliances. The company highlighted increased sales of pumps due to the execution of solar pump orders and growth in non-ceiling units within the fan category. The company has also adopted a 'platform-first approach', launching in-house BLDC and induction platforms, Nucleus and X-Tech.

The lighting segment reported revenue of ₹276 crore in Q4. Despite ongoing price erosion and higher advertising/promotional expenses, the EBIT margin in this segment expanded significantly by 700 basis points YoY to 15.9%. This margin improvement was attributed to an improved product mix in B2C lighting, which also saw top-line growth despite price pressures. New B2B lighting products were introduced across various categories including street, flood, industrial, and indoor commercial segments.

Butterfly Gandhimathi Appliances Ltd., a subsidiary, contributed positively to the results. It posted a 12% YoY increase in revenue in Q4, reversing the decline observed in the first three quarters of the fiscal year. The subsidiary experienced broad-based growth across its product portfolio, notably gaining market share in mixer-grinders and pressure cookers sequentially. Its EBITDA margin improved substantially to 8.6% in Q4 FY25, a sharp recovery from -11.9% in Q4 FY24.

Dividend Recommendation

The company's board has recommended a dividend of ₹3 per equity share of ₹2 each (fully paid-up) for the financial year ended March 31, 2025. This recommended dividend will be payable after Friday, August 8, contingent on the approval of shareholders at the forthcoming Annual General Meeting (AGM).

Market Reaction and Outlook

The shares of Crompton Greaves Consumer Electricals Ltd. closed lower. On the NSE, the shares closed 1.21% lower at ₹327.34 apiece. The stock has seen a decline over the past year, falling 3.16% in the last 12 months and 17.28% year-to-date.

Overall, Crompton Greaves' Q4 FY25 results showcase resilient growth driven by specific product categories and operational improvements, leading to strong profit and margin expansion, alongside a recommended dividend for shareholders.

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