Crompton Greaves Consumer surges 15% on healthy September quarter results

Shares of Crompton Greaves Consumer Electricals surged 15 per cent to Rs 328 on the BSE on Friday after the company reported 27.7 per cent year on year (YoY) growth in net profit at Rs 142 crore for the quarter ended September 2020 (Q2FY21).  The household appliances company's stock was trading at its 52-week high level.

Net sales for the quarter grew 12.8 per cent at Rs 1,213 crore on YoY basis. Electrical consumer durables segment grew by 18 per cent, driven by strong performance in all segments. Lighting business continued on its recovery path on the back of strong volume growth in LED products.

Ebitda (earnings before interest, taxes, depreciation, and amortization) margin improved 380 basis points at 15.8 per cent in Q2FY21 from 12.8 per cent in Q2FY20. The actions taken to reduce costs and improve mix in lighting have helped deliver healthy margins.

Meanwhile, the board has declared interim dividend of Rs 3 per share for the financial year 2020-21. The company has fixed November 4, 2020 as the record date for interim dividend for the purpose of determining the entitlement of the shareholders.

At 09:52 am, the stock was trading 9 per cent higher at Rs 312 on the BSE, as compared to 0.34 per cent gain the S&P BSE Sensex. The trading volumes on the counter jumped five-fold with a combined 2.6 million equity shares changing hands on the BSE and NSE, so far.

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