- 19 May 2023
- ICICI Securities
CGCEL reported a mixed bag performance in Q4.
Crompton Greaves Consumer Electricals Ltd | CMP: 413 | Market Cap: 26,544.24
Q4FY23 Earnings Summary
View: We believe, CGCEL's Q4 performance showed improvement on the revenue front, mainly led by its ECD segment. The company's appliances business grew by 42% YoY, pumps business grew 15% YoY and company witnessed improvement in demand of premium fans amid transition to BEE norms. We believe that CGCEL's ECD segment growth is encouraging. After being under pressure for several quarters, the company's pump business has shown healthy recovery in Q4. On the margin front, although EBITDA margin witnessed sequentially recovery, it is still below its pre-covid margin range of 12-14%. We believe that this is mainly due to increased ad spend and lower operating leverage of its lighting and Butterfly segments, respectively. We await management commentary on demand and margin outlook going forward.
Impact: Neutral