India's Crompton Greaves beats Q2 profit view on demand for home appliances

Voltas

14/11/2024 10:52

Nov 14 (Reuters) - India's Crompton Greaves Consumer Electricals  CROP.NS  reported a bigger-than-expected rise in second-quarter
profit on Thursday, boosted by increased sales of home appliances such as pumps and mixer grinders.
    The company's consolidated net profit rose 28.5% to 1.25 billion rupees ($14.80 million) in the quarter ended Sept. 30, beating
analysts' estimate of 1.22 billion rupees, per LSEG data.
    Revenue from operations rose 6.4% to 18.96 billion rupees, with the electrical consumer durables (ECD) segment growing 12.5%.
    "With pumps and appliances businesses delivering robust growth, ECD segment is developing new growth engines," Managing Director and CEO
Promeet Ghosh said.  
    For further results highlights, click [Full Story]
    
    KEY CONTEXT
    The July-September period is seasonally the weakest as demand for appliances wanes after the summer. This time, inflationary pressures
also weighed on sentiment.
    However, analysts said that sales for Crompton Greaves' appliances remained steady, driven by product launches, increased focus on
marketing and competitive prices. 
    Havells India  HVEL.NS  and Polycab  POLC.NS  missed profit estimates for the quarter amid sluggish demand, while Voltas  VOLT.NS 
reported a bigger-than-expected profit. 
 
    PEER COMPARISION 
    
                                   Valuation (next 12 months)      Estimates (next 12 months)           Analysts' sentiment         
                     RIC        PE     EV/EBITDA   Price/Sales    Revenue growth  Profit growth  Mean      # of      Stock to       Div
                                                                  (%)             (%)            rating*   analysts  price target   yield
                                                                                                                     **             (%)
 Crompton Greaves     CROP.NS   35.98  24.31       2.54           12.86           29.05          Buy       32        0.79           0.78
 Voltas               VOLT.NS   54.07  40.73       2.72           18.09           58.63          Hold      34        0.98           0.33
 Havells India        HVEL.NS   56.63  37.97       4.48           15.75           23.77          Hold      23        0.83           0.56
 Polycab India        POLC.NS   40.99  29.60       4.01           19.31           18.87          Buy       26        0.85           0.47
 * The mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
 ** The ratio of the 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 = 84.4370 Indian rupees)

    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
STOCK PERFORMANCE    https://tmsnrt.rs/3USZXs5
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Reporting by Nishit Navin in Bengaluru; Editing by Savio D'Souza)
 ((Nishit.Navin@thomsonreuters.com;))