BENGALURU (Reuters) – Home appliances maker Crompton Greaves Consumer Electricals on Friday missed second-quarter profit estimates, as higher costs overshadowed seasonal demand for its products, which had been boosted by a weak monsoon.
The company’s consolidated net profit came in at 1.01 billion rupees ($12.1 million), down nearly 23% year-on-year and well below analysts’ estimate of 1.15 billion rupees as per LSEG data.
Revenue from operations was up 4.9%, while expenses rose 6.2%.
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India recorded its weakest monsoon since 2018 this year, as the El Nino weather pattern made August the driest in more than a century, leading analysts to eye a sales boost for the company and its peers Orient Electric, V-Guard Industries and Havells India. The company was also expected to benefit from upbeat real estate demand and hopes of a strong festive season, analysts said, citing dealers.
The company continued to battle rising costs, a trouble it has faced for the last 3-4 quarters, in what was a seasonally weaker quarter.
Valuation (next Estimates (next Analysts’ sentiment
12 months) 12 months)
RIC PE EV/EBITDA Revenue profit Mean No. of Stock to Div
growth growth rating* analysts price yield
Crompton Greaves 28.68 19.81 10.37 20.27 BUY 35 0.82 1.08
Havells India Ltd 50.61 32.90 13.84 26.93 BUY 21 0.87 0.60
V Guard Industries 41.40 24.73 15.24 33.57 BUY 16 0.96 0.44
Polycab India Ltd 40.59 27.45 19.02 23.18 BUY 25 0.94 0.41
* The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** The ratio of stock’s last close to analysts’ mean price target; a ratio above 1 means the stock is trading above the PT
JULY-SEPTEMBER STOCK PERFORMANCE
— All data from LSEG
— $1 = 83.2473 Indian rupees
(Reporting by Manvi Pant and Hritam Mukherjee in Bengaluru; Editing by Varun H K)