Crompton Greaves Consumer Electricals Limited — Interim / Quarterly Report 2022

Jul 23, 2021

Crompton

Crompton Greaves Consumer Electricals Limited Registered & Corporate Office: Tower 3, 1st Floor, East Wing, Equinox Business Park, LBS Marg, Kurla (West) , Mumbai 400 070. India Tel: +91 22 6167 8499 F: +91 22 6167 8383 W: www.crompton.co.in. CIN: L31900MH2015PLC262254

Date: July 23, 2021

To,	To,
BSE Limited ("BSE"),	National Stock Exchange ofIndia Limited
Corporate Relationship Department,	("NSE")
nd Floor,2New Trading Ring,	th Floor,Exchange Plaza, 5
P.J. Towers, Dalal Street,	Plot No. C/1, G Block,
Mumbai- 400001.	Sandra Kurla Complex
	Sandra (East),
	Mumbai- 400051
BSE Scrip Code:539876	NSE Symbol: CROMPTON
ISIN: INE299U01018	ISIN: INE299U01018
OurReference:55 /2021-22	OurReference:55 / 2021-22

Dear Sir/Madam,

Sub: Highlights of Q-1 of FY 2020-21

This is in continuation of our letter dated July 23, 2021 regarding Outcome of Board Meeting held on July 23, 2021 wherein the Company had approved the following:

• 1. Unaudited financial results (Standalone & Consolidated) for the quarter ended June 30, 2021
• 1. Limited Review Report on the unaudited Financial results (Standalone and Consolidated) for the quarter ended June 30, 2021
• 1. Press release on the Unaudited Financial Results for the quarter ended June 30, 2021

In this regard please find attached the highlights of Q-1 of FY 2021-22.

You are requested to kindly take the above information on your record.

Thanking you,

For Crompton Greaves Consumer Electricals Limited

���

Pragya Kaul Company Secretary & Compliance Officer Encl: A/a

Information Update – Q1 FY22 (Consolidated)

July 2021

Table of Contents

• Quarterly Update
• Key Highlights Q1 FY 22
• Summary of Q1 Results
• Segment Details
• Cash Flow highlights
• Cash / (Debt)
• Key Financial Ratios

Quarterly Update

• Health and safety of our employees continues to be of utmost importance to the company.
• Sales operations (dealers, distributors and retailers including e-commerce and modern trade), manufacturing and logistics operations witnessed disruption in the second fortnight of April , severely impacted in May. Recovery process began in late May and continued throughout June.
• We have witnessed growth across geographies and product categories.
• Alternate channels such as Rural & E-Com continue to demonstrate strong growth.
• Commodity prices continued to increase in Q1.
• Pricing actions, mix improvement & aggressive cost reductions have mitigated the rise in commodity costs.
• Currently there is only one active Covid case amongst our employee as compared to 210 at the peak of the second wave.
• To counter the surge, we restored WFH policy across all offices, collaborated with hospitals & 1mg for vaccination of all employees and their family members at company expense. We successfully conducted vaccination drive in our Mumbai office for our employees and their families. We are also collectively assisting infected members with covid-19 related emergencies.
• Until now, 89% of our employees have received their first vaccine dose.

Key Highlights – Q1

▪ ECD Performance

• o Broad based growth across all product lines.
• o Strong performance with a growth of 63 % in Fans driven by premium & deco fans.
• o Appliance business continues exponential growth of 99% driven by core categories Air Cooler, Mixer Grinder & Geysers
• o Pump business grew by 17% driven by domestic pumps
• Lighting Performance
  • o B2C Lighting LED continue to witness healthy value growth of 48%
  • o Lighting B2B & B2G business continue to face slow order pick up by institutions- Govt.
• Material margins expanded by 150 bps sequentially
  • o Commodity headwinds continue to impact ECD margins.
  • o Lighting EBIT margins stood at 10.7%, expanded YoY by 450 bps.
• Market Share gains and leveraging alternate channel
  • o We continued to gain market share in Fans (+1%)
  • o E-commerce and MT channel delivered 149% growth YoY.
  • o Rural channel continued its superior growth of 195% YoY.

▪ Cash Conversion

o We continue to maintain a healthy Balance sheet to support business requirements and invest in long term growth of the company.

Summary of Q1 Results

Crompton

Particulars	Q1FY22	Q1FY21	GoLY	Q4FY21
	CrRs	CrRs		CrRs
NetSales	1050,	720	459%	1522,
CostLess:Material	711	486	463%	1053,
MaterialMargin	340	234	451%	470
ofNetSales%asa	324%	5%32		308%
EmployeeCost	89	72	230%	92
SalesAdvertisement&Promotion	25	2	12930%	30
OtherExpenses	101	59	698%	120
EBIDTA	126	101	246%	228
%ofNetSalesasa	120%	141%		150%
Less:Depreciation&Amortization	8	8	3%5-	7
EBIT	119	93	271%	221
ofNetSales%asa	113%	130%		5%14
CostLess:Finance	10	11	66%-	10
Add:OtherIncome	19	19	02%-	21
ProfitBeforeTax	127	101	257%	231
Sales%ofNetasa	121%	140%		152%
TaxExpenses	32	26	227%	18-
NetProfit	95	75	267%	249
ofSales%Netasa	90%	104%		164%

• Corrective actions largely negated YoY commodity cost headwinds.

• A&P activity stepped up
  • Other expenses higher due to continued investments in key initiatives and increased activity

• Q4 FY 21 includes impact of tax refund of previous assessment years.

Segment Revenue

Particulars		Q1 FY22	Q1 FY21		Q4 FY21
		Rs. Cr	Rs. Cr	GoLY	Rs. Cr
Electrical Consumer Durables		884	597	48%	1,193
Lighting Products		166	124	34%	329
Total Income from Operation		1,050	720	46%	1,522
Segment EBIT
	Q1	FY22	Q1	FY21	Q4FY21
Particulars	RsCr	EBIT%	RsCr	EBIT%	RsCrEBIT
ConsumerElectricalDurables	156	176%	122	205%	216
LightingProducts	18	107%	7	61%	53
Total	173	5%16	130	180%	269
•Commodity cost pressure has resulted in margin contraction in ECD.
•Strong improvement in Lighting margins YoY attributable to sustained volume and value growth and
cost saving initiatives.

Segment EBIT

Particulars	Q1FY22		Q1	FY21	Q4FY21
	CrRs	EBIT%	CrRs	EBIT%	CrRs	EBIT%
ElectricalConsumerDurables	156	176%	122	205%	216	181%
LightingProducts	18	107%	7	61%	53	161%
Total	173	165%	130	180%	269	177%

• Commodity cost pressure has resulted in margin contraction in ECD.
• Strong improvement in Lighting margins YoY attributable to sustained volume and value growth and

Cash Flow Highlights

Particulars	Q1FY22	Q1FY21
	RsCr	RsCr
Profitbeforeexceptionalanditemstax	127	101
Adjustmentsfor:
Depreciation	8	8
andotheradjustmentsInterest	3	- 6	•	Increase in working capital is due to higher
/(Increase)WorkingCapitalDecreasein	-241	93		inventory & advances for securing
CashfromOperation	-103	196		commodity.
paidTaxes	-29	34	•	Q1 FY 21 includes impact of tax refund.
CashfromOperatingActivities(A)Net	-132	229
CashflowsfromInvestingActivities
Interestincome	11	10
SaleofFixedAssets	-	1
/(Purchase)saleof(net)investmentscurrent	123	-329
PurchaseofFixedAssets	- 6	- 2
/fromCash(usedin)investingactivities(B)Net	128	-320
CashflowsfromfinancingActivities
Proceedsfromofsharesissue	3	-
ProceedsfromShort(Net)TermBorrowings	6	37
ofdividendincludingdividenddistributionPaymenttax	1	1
Proceedsfromdebenturesissued	-	300
ofLiabilityRepaymentLease	- 3	- 3
paidandofdebenturesrepaidInterestCost	-218	-203	•	NCDs repaid along with interest thereon.
/fromCash(usedin)financingactivities(C)Net	-212	132
/(decrease)cashandBankbalancesNetincreasein	-216	42	•	Cash / Bank includes FD's with maturity less
Cash/BankbalanceofBalancesOpening	262	24		than 3 months
Cash/BankClosingBalanceofBalances	47	66

Cash / (Debt)

Particulars	AsJune21onCrsRs	AsJune20onCrsRs	AsMar21onCrsRs
CashCashandEquivalent	47	66	579
OtherBankBalances	342	24	25
CurrentInvestment	656	884	770
Less:TotalDebt*	305	516	479
Cash/(Debt)Net	739	458	895
Debt/EquityNet	NA	NA	NA
NetDebt/EBIDTA(Annualised)	NA	NA	NA

Key Financial Ratios

14.1% 12.0%

EBIDTA Margins

PBT Margins

RoCE

RoE

Thank You