Crompton Greaves Consumer Electricals Ltd reported a 36.16 percent jump in consolidated net profit at Rs 140.54 crore in the fourth quarter ended March 31. The company had posted standalone net profit of Rs 103.22 crore in the same period a year ago, Crompton Greaves Consumer Electricals Ltd (CGCEL) said. For the fiscal ended March 31, the company's consolidated net profit was at Rs 401.39 crore as compared to Rs 323.79 crore in the previous year, a jump of 23.97 percent.
Shantanu Khosla, MD, CGCEL shared his views and outlook.
On electric consumer durables (ECD) business, Khosla said, “If we look at the full year growth level, we grew at about 16 percent. In the immediate Q4, there was a slight slowdown in growth but we believe that this is temporary and it was purely due to the fact that we had an extended winter and a late start to the summer."
“Margin contraction happened on the ECD business in this quarter was due to an increase in the commodity prices, which were particularly high and we were not completely able to cover them with cost reduction. Moving forward, we have seen that commodity prices have eased and our existing cost reduction programme should be able to cover the increase in that. So we are also quite confident that the margins will bounce back,” he said.
“We see healthy growth in the year ahead especially because we put in some unique new introductions in the market,” Khosla added.