Crompton Greaves Consumer Electricals - Q3FY21 First Cut - ICICI Direct

(CMP : Rs. 428 Mcap : Rs. 26,863 crore)

Crompton Greaves Consumer Electricals (CGCEL) reported a healthy set of Q3FY21 numbers led by sharp increase in sales and a healthy EBITDA margin expansion. The Q3FY21 performance was ahead of our estimate on all fronts.

Q3FY21 Earnings Summary

- CGCEL's revenues came in at Rs. 1348 crore up by 26% YoY (Vs I-direct estimate of ~Rs. 1231 crore) led by strong performance of ECD segment which grew by 32% YoY to Rs. 1036 crore (I-direct estimate: Rs. 912 crore). The lighting business also reported a decent growth of 10% YoY at Rs. 312 crore (I-direct estimate: Rs. 318 crore).

- While improved product mix helped maintaining gross margin at same levels on a YoY basis, savings in other operating cost drove EBITDA margin up by 208 bps YoY to ~14.8% in Q3FY21 (Vs I-direct estimate of 14%)

- The PBT came in at Rs. 203 crore, up by 46% YoY (Vs I-direct estimate: Rs. 173 crore) following sales growth and higher EBITDA margin.

- The PAT at Rs. 151 crore also came in better than our estimate of Rs. 129 crore. PAT declined by 6% YoY mainly due to reversal of tax benefits in the base period.

- The strong performance was led by consumer facing business and improved EBITDA margin. We await management commentary on sustainability of the recovery in both ECD and lighting products future outlook. The detailed report will be released post concall.

We would be shortly coming out with a detailed report.

Shares of Crompton Greaves Consumer Electricals Ltd was last trading in BSE at Rs.428.15 as compared to the previous close of Rs. 438.55. The total number of shares traded during the day was 198018 in over 6565 trades.

The stock hit an intraday high of Rs. 455.6 and intraday low of 420.55. The net turnover during the day was Rs. 86837302.

Source : Equity Bulls

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