The share price of Crompton Greaves Consumer Electricals rallied up to 15 percent on Friday after the company reported a strong set of numbers for the September quarter.
The stock gained as much as 15 percent to touch its 52-week high at Rs 329 per share on the NSE. However, the stock pared gains to trade 8.5 percent higher at Rs 311 apiece, at 10:27 am.
The company's net profit jumped 27.7 percent year-on-year (YoY) to Rs 142 crore as against Rs 110.8 crore in the September quarter last year.
The top-line climbed 12.77 percent to Rs 1,213 crore as compared to Rs 1,076 crore in the corresponding quarter last year. Total expenses were at Rs 1,040.73 crore as against Rs 961.60 crore earlier, up 8.22 percent.
Earnings before interest, tax, depreciation and amortization (EBITDA) margin improved by 380 basis points to 15.8 percent from 12.8 percent in Q2FY20.
Electrical consumer durables segment rose by 18 percent driven by strong performance in all the segments, said the company. Meanwhile, the lighting business is on a recovery path led by the strong LED volume growth, it added.
CGCEL Managing Director Shantanu Khosla said, "All segments of our business have continued to recover through the quarter… Market share continues to grow behind an accelerated innovation program.” ”Our cost reduction program continues to deliver strong results driving bottom line faster than top line."
The company's board also approved an interim dividend of Rs 3 per share for FY20-21.