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Crompton Greaves Consumer Electricals Limited Interim / Quarterly Report 2021
60950_rns_2021-05-21_7dadb40c-b32d-4157-a7ac-9468276b6aa6.pdf
Interim / Quarterly Report
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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 T: +91 22 6167 8499 F: +91 22 6167 8383 W: www.crompton.co.in CIN: L31900MH2015PLC262254
Date: May 21, 2021
| To, | To, |
|---|---|
| BSE Limited ("BSE"), | National Stock Exchange of India Limited |
| Corporate Relationship Department, | ("NSE") |
| nd Floor, New Trading Ring,2 | Exchange Plaza, 5th Floor, |
| P.J. Towers, Dalal Street, | Plot No. C/1, G Block, |
| Mumbai –400 001. | Bandra Kurla Complex |
| Bandra (East), | |
| Mumbai –400 051 | |
| BSE Scrip Code: 539876 | NSE Symbol: CROMPTON |
| ISIN: INE299U01018 | ISIN: INE299U01018 |
| Our Reference: 21/2021-22 | Our Reference: 21/2021-22 |
Dear Sir/Madam,
Sub: Highlights of Q-4 of FY 2020-21
This is in continuation of our letter dated May 21, 2021 regarding Outcome of Board Meeting held on May 21, 2021 wherein the Company had approved the Statement showing the Audited Financial Results (Standalone and Consolidated) for the quarter and year ended March 31, 2021, along with Statement of Assets and Liabilities as at year ended March 31, 2021 (Standalone and Consolidated).
In this regard please find attached the highlights of Q-4 of FY 2020-21.
You are requested to kindly take the above information on your record.
Thanking you,
For Crompton Greaves Consumer Electricals Limited
PRAGYA SAHAL Digitally signed by PRAGYA SAHAL DN: c=IN, o=Personal, title=8504, pseudonym=4e9eef76d3c3f25bec8066a 8035f30130f102c5e07fc41eb7b7a9dabe e26676f, postalCode=400074, st=Maharashtra, serialNumber=84c3cda8c48ae17c551bd 8b9ee5a8312ce8ac0972726393186cb59
Pragya Kaul Company Secretary & Compliance Officer Encl: A/a 193af2751f, cn=PRAGYA SAHAL Date: 2021.05.21 19:24:33 +05'30'
Information Update – Q4/FY FY21 (Consolidated)
May 2021
Table of Contents
- Quarterly Update
- Current Scenario Update
- Key Highlights Q4 FY 21
- Summary of Q4 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.
- Several macro economic indicators (e.g., GST collections, market liquidity etc.) have reflected a strong recovery for the Indian economy in Q4.
- Sales operations (dealers, distributors and retailers including e-commerce and modern trade), manufacturing and logistics operations witnessed normalcy during Q4 ie. activity was at a pre-covid level
- We have witnessed growth across geographies amongst our product categories and price ranges in Q4.
- Regions that were hit hard due to prolonged lockdown (West) and natural calamities (East) in H1 have witnessed recovery in Q3 and the continued upward business momentum in Q4 have helped to register significant growth in Q4.
- Rural Economy seems to be more resilient and promising, further aided by our investment Rural Channel has witnessed exponential growth
- Commodity costs have been escalating sharply since November and continued the trend through-out in Q4. We have taken multiple actions to partly mitigate the impact of cost increase.
Current Scenario Update
- Country has been hit by fiercer Covid wave and so is the Crompton family. The infection count amongst employees in this wave has been higher as compared to previous one.
- To counter the surge, we have implemented WFH policy across all offices, collaborated with hospitals & 1mg for vaccination of all employees and their family members at company expense. We are also collectively assisting infected members with covid-19 related emergencies.
- Until now, 508 of our employees have received their first dose of vaccination i.e 27% (~80% of employees above 45 years of age) of our employee strength (including white and blue collared permanent employees).
- Due to sporadic lockdown imposed in several regions in April, demand has been impacted.
- With most of the states announcing lockdown from end of April, the activity is expected to be impacted and normalcy likely to be restored by Q2.
- Despite partial lockdowns announced in few regions across India in Q1 FY22,our factories and distribution network continue to function abiding by government guidelines.
Key Highlights – Q4
▪ ECD Performance
- o Strong performance by Fans with a growth of 59% in Q4 [Jan & Feb 29%] driven by premium fans.
- o Appliance business continues exponential growth of 74% [Jan & Feb 40%] driven by core categories - Air Cooler, Mixer Grinder & Geysers
- o Pump business grew by 61% [Jan & Feb 18%] driven by domestic pumps
- Lighting Performance
- o B2C Lighting LED continues to witness healthy volume growth of 23%
- o Lighting B2B business continues to face challenges due to slow order pick by institutions
- Material margins contracted by 120 bps sequentially; maintained EBIDTA Margins
- o Commodity headwinds continue to impact ECD margins.
- o Lighting EBIT margins expanded sequentially by 380 bps.
- Market Share gains and leveraging alternate channel
- o We continued to gain market share in Fans (1%)
- o E-COM and MOR channel grew 86% in Q4 (24% growth in Jan & Feb) over same period LY.
- o Rural channel continued its superior growth of 117% in Q4 (72% growth in Jan & Feb) over same period LY.
- Cash Conversion
- o Cash conversion continues to be strong aided by efficient working capital management
- Dividend Declaration
- o Board declares Rs 2.5 per share as final dividend for FY20-21
Summary of Q4 Results
| Q4FY21 | Q4FY20 | Q3FY21 | |
|---|---|---|---|
| RsCr | RsCr | RsCr | |
| 1522, | 1026, | 483% | 1348, |
| 1053, | 701 | 501% | 916 |
| 470 | 325 | 445% | 433 |
| 308% | 317% | 0814%- | 321% |
| 92 | 71 | 303% | 93 |
| 30 | 10 | 1867% | 25 |
| 120 | 103 | 164% | 114 |
| 228 | 141 | 615% | 200 |
| 150% | 138% | 148% | |
| 7 | 8 | 127%- | 7 |
| 221 | 133 | 660% | 193 |
| 145% | 130% | 143% | |
| 10 | 8 | 265% | 11 |
| 21 | 12 | 722% | 20 |
| 231 | 137 | 689% | 202 |
| 152% | 133% | 150% | |
| 18- | 35 | 1523%- | 51 |
| 249 | 102 | 1440% | 151 |
| 164% | 99% | 112% | |
| GoLY |
- Commodity cost headwind impacted YoY and QoQ performance
- Increments effective 1st Oct 2020 and R&D capability building,
- strengthening sales organization
- A&P activity stepped up
S
• Other expenses higher due to increased activity
- Additional interest on NCD's raised in Q1FY21
- Higher investment surplus boosted investment income
- Like to like PAT after adjusting for impact of IT Assessment order (incl. interest thereon) for previous years has grown by 63.5%
Segment Revenue
| Q4 FY21 | Q4 FY20 | Q3 FY21 | |||||
|---|---|---|---|---|---|---|---|
| Particulars | Rs. Cr | Rs. Cr | GoLY | Rs. Cr | |||
| Electrical Consumer Durables | 1,193 | 741 | 61% | 1,036 | |||
| Lighting Products | 329 | 285 | 15% | 312 | |||
| Total Income from Operation | 1,522 | 1,026 | 48% | 1,348 | |||
| Segment EBIT | |||||||
| Q4 FY21 | Q4 FY20 | Q3 FY21 | |||||
| Particulars | Rs. Cr | EBIT % | Rs. Cr | EBIT % | Rs. Cr | ||
| Electrical Consumer Durables | 216 | 18.1% | 148 | 20.0% | 205 | ||
| Lighting Products | 53 | 16.1% | 22 | 7.7% | 38 | ||
| Total | 269 | 17.7% | 170 | 16.6% | 243 | ||
| •Commodity cost pressure has resulted in margin contraction in ECD partly offset by pricing action | |||||||
| •Strong improvement in Lighting margins sequentially and v/s LY attributable to sustained volume | |||||||
| and value growth, cost saving initiatives delivering desired results etc. |
Segment EBIT
| Q4 FY21 | Q4 FY20 | Q3 FY21 | ||||
|---|---|---|---|---|---|---|
| Particulars | Rs. Cr | EBIT % | Rs. Cr | EBIT % | Rs. Cr | EBIT % |
| Electrical Consumer Durables | 216 | 18.1% | 148 | 20.0% | 205 | 19.8% |
| Lighting Products | 53 | 16.1% | 22 | 7.7% | 38 | 12.3% |
| Total | 269 | 17.7% | 170 | 16.6% | 243 | 18.0% |
- Commodity cost pressure has resulted in margin contraction in ECD partly offset by pricing action
- Strong improvement in Lighting margins sequentially and v/s LY attributable to sustained volume
Cash Flow Highlights
| Particulars | FY21 | FY20 | ||
|---|---|---|---|---|
| CrRs | CrRs | |||
| Profitbeforeexceptionalanditemstax | 724 | 591 | ||
| Adjustmentsfor: | ||||
| Depreciation | 30 | 27 | ||
| andotheradjustmentsInterest | -10 | 10 | • | Focused initiatives has helped us to |
| /(Increase)WorkingCapitalinDecrease | 145 | -72 | improve WC Cycle. | |
| CashfromOperation | 888 | 556 | ||
| paidTaxes | -57 | -145 | ||
| Cashfrom(A)NetOperatingActivities | 831 | 411 | ||
| CashflowsfromInvestingActivities | ||||
| Interestincome | 27 | 21 | ||
| /(Purchase)saleof(net)investmentscurrent | -186 | 36 | ||
| PurchaseofFixedAssets | -20 | -48 | ||
| /fromCash(usedin)(B)Netinvestingactivities | -179 | 9 | ||
| CashflowsfromfinancingActivities | ||||
| Proceedsfromofsharesissue | 7 | 5 | ||
| /Proceeds(Repayment)ofDebentures | 300 | - | ||
| ofdividendincludingdividenddistributionPaymenttax | -188 | -151 | • | NCDs raised in Q1 FY21 |
| Proceeds/(Repayment)ofofdebentures | -170 | -300 | • | Payment of interim dividend |
| ofLiabilityRepaymentLease | -12 | - 9 | ||
| paidandofdebenturespaidInterestcost | -34 | -59 | ||
| /fromCash(usedin)financing(C)Netactivities | -97 | -513 | ||
| /(decrease)cashandBankbalancesNetincreasein | 555 | -93 | • | Cash / Bank includes FD's with maturity |
| Cash/BankbalanceofBalancesOpening | 24 | 117 | less than 3 months | |
| Cash/BankClosingBalanceofBalances | 579 | 24 |
| Particulars | AsMar21onRsCrs | AsMar20onRsCrs | AsDec20onRsCrs |
|---|---|---|---|
| CashandCashEquivalent | 579 | 24 | 443 |
| OtherBankBalances | 25 | 24 | 24 |
| CurrentInvestment | 770 | 541 | 818 |
| Less:TotalDebt* | 479 | 350 | 479 |
| Cash/(Debt)Net | 895 | 239 | 807 |
| Debt/EquityNet | NA | NA | NA |
| Debt/EBIDTA(Annualised)Net | NA | NA | NA |
o Company's cash conversion cycle continues to remain strong on back of efficient working capital management and is visible in increasing net cash and equivalents over the period.
Key Financial Ratios
EBIDTA Margins
PBT Margins
RoCE
RoE
Thank You
Information Update – Q4/FY FY21 (Consolidated)
May 2021
Table of Contents
- Quarterly Update
- Current Scenario Update
- Key Highlights Q4 FY 21
- Summary of Q4 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.
- Several macro economic indicators (e.g., GST collections, market liquidity etc.) have reflected a strong recovery for the Indian economy in Q4.
- Sales operations (dealers, distributors and retailers including e-commerce and modern trade), manufacturing and logistics operations witnessed normalcy during Q4 ie. activity was at a pre-covid level
- We have witnessed growth across geographies amongst our product categories and price ranges in Q4.
- Regions that were hit hard due to prolonged lockdown (West) and natural calamities (East) in H1 have witnessed recovery in Q3 and the continued upward business momentum in Q4 have helped to register significant growth in Q4.
- Rural Economy seems to be more resilient and promising, further aided by our investment Rural Channel has witnessed exponential growth
- Commodity costs have been escalating sharply since November and continued the trend through-out in Q4. We have taken multiple actions to partly mitigate the impact of cost increase.
Current Scenario Update
- Country has been hit by fiercer Covid wave and so is the Crompton family. The infection count amongst employees in this wave has been higher as compared to previous one.
- To counter the surge, we have implemented WFH policy across all offices, collaborated with hospitals & 1mg for vaccination of all employees and their family members at company expense. We are also collectively assisting infected members with covid-19 related emergencies.
- Until now, 508 of our employees have received their first dose of vaccination i.e 27% (~80% of employees above 45 years of age) of our employee strength (including white and blue collared permanent employees).
- Due to sporadic lockdown imposed in several regions in April, demand has been impacted.
- With most of the states announcing lockdown from end of April, the activity is expected to be impacted and normalcy likely to be restored by Q2.
- Despite partial lockdowns announced in few regions across India in Q1 FY22,our factories and distribution network continue to function abiding by government guidelines.
Key Highlights – Q4
▪ ECD Performance
- o Strong performance by Fans with a growth of 59% in Q4 [Jan & Feb 29%] driven by premium fans.
- o Appliance business continues exponential growth of 74% [Jan & Feb 40%] driven by core categories - Air Cooler, Mixer Grinder & Geysers
- o Pump business grew by 61% [Jan & Feb 18%] driven by domestic pumps
- Lighting Performance
- o B2C Lighting LED continues to witness healthy volume growth of 23%
- o Lighting B2B business continues to face challenges due to slow order pick by institutions
- Material margins contracted by 120 bps sequentially; maintained EBIDTA Margins
- o Commodity headwinds continue to impact ECD margins.
- o Lighting EBIT margins expanded sequentially by 380 bps.
- Market Share gains and leveraging alternate channel
- o We continued to gain market share in Fans (1%)
- o E-COM and MOR channel grew 86% in Q4 (24% growth in Jan & Feb) over same period LY.
- o Rural channel continued its superior growth of 117% in Q4 (72% growth in Jan & Feb) over same period LY.
- Cash Conversion
- o Cash conversion continues to be strong aided by efficient working capital management
- Dividend Declaration
- o Board recommends Rs 2.5 per share as final dividend for FY20-21
Summary of Q4 Results
| Q4FY21 | Q4FY20 | Q3FY21 | |
|---|---|---|---|
| RsCr | RsCr | RsCr | |
| 1522, | 1026, | 483% | 1348, |
| 1053, | 701 | 501% | 916 |
| 470 | 325 | 445% | 433 |
| 308% | 317% | 0814%- | 321% |
| 92 | 71 | 303% | 93 |
| 30 | 10 | 1867% | 25 |
| 120 | 103 | 164% | 114 |
| 228 | 141 | 615% | 200 |
| 150% | 138% | 148% | |
| 7 | 8 | 127%- | 7 |
| 221 | 133 | 660% | 193 |
| 145% | 130% | 143% | |
| 10 | 8 | 265% | 11 |
| 21 | 12 | 722% | 20 |
| 231 | 137 | 689% | 202 |
| 152% | 133% | 150% | |
| 18- | 35 | 1523%- | 51 |
| 249 | 102 | 1440% | 151 |
| 164% | 99% | 112% | |
| GoLY |
- Commodity cost headwind impacted YoY and QoQ performance
- Increments effective 1st Oct 2020 and R&D capability building,
- strengthening sales organization
- A&P activity stepped up
S
• Other expenses higher due to increased activity
- Additional interest on NCD's raised in Q1FY21
- Higher investment surplus boosted investment income
- Like to like PAT after adjusting for impact of IT Assessment order (incl. interest thereon) for previous years has grown by 63.5%
Segment Revenue
| Q4 FY21 | Q4 FY20 | Q3 FY21 | |||||
|---|---|---|---|---|---|---|---|
| Particulars | Rs. Cr | Rs. Cr | GoLY | Rs. Cr | |||
| Electrical Consumer Durables | 1,193 | 741 | 61% | 1,036 | |||
| Lighting Products | 329 | 285 | 15% | 312 | |||
| Total Income from Operation | 1,522 | 1,026 | 48% | 1,348 | |||
| Segment EBIT | |||||||
| Q4 FY21 | Q4 FY20 | Q3 FY21 | |||||
| Particulars | Rs. Cr | EBIT % | Rs. Cr | EBIT % | Rs. Cr | ||
| Electrical Consumer Durables | 216 | 18.1% | 148 | 20.0% | 205 | ||
| Lighting Products | 53 | 16.1% | 22 | 7.7% | 38 | ||
| Total | 269 | 17.7% | 170 | 16.6% | 243 | ||
| •Commodity cost pressure has resulted in margin contraction in ECD partly offset by pricing action | |||||||
| •Strong improvement in Lighting margins sequentially and v/s LY attributable to sustained volume | |||||||
| and value growth, cost saving initiatives delivering desired results etc. |
Segment EBIT
| Q4 FY21 | Q4 FY20 | Q3 FY21 | ||||
|---|---|---|---|---|---|---|
| Particulars | Rs. Cr | EBIT % | Rs. Cr | EBIT % | Rs. Cr | EBIT % |
| Electrical Consumer Durables | 216 | 18.1% | 148 | 20.0% | 205 | 19.8% |
| Lighting Products | 53 | 16.1% | 22 | 7.7% | 38 | 12.3% |
| Total | 269 | 17.7% | 170 | 16.6% | 243 | 18.0% |
- Commodity cost pressure has resulted in margin contraction in ECD partly offset by pricing action
- Strong improvement in Lighting margins sequentially and v/s LY attributable to sustained volume
Cash Flow Highlights
| Particulars | FY21 | FY20 | ||
|---|---|---|---|---|
| CrRs | CrRs | |||
| Profitbeforeexceptionalanditemstax | 724 | 591 | ||
| Adjustmentsfor: | ||||
| Depreciation | 30 | 27 | ||
| andotheradjustmentsInterest | -10 | 10 | • | Focused initiatives has helped us to |
| /(Increase)WorkingCapitalinDecrease | 145 | -72 | improve WC Cycle. | |
| CashfromOperation | 888 | 556 | ||
| paidTaxes | -57 | -145 | ||
| Cashfrom(A)NetOperatingActivities | 831 | 411 | ||
| CashflowsfromInvestingActivities | ||||
| Interestincome | 27 | 21 | ||
| /(Purchase)saleof(net)investmentscurrent | -186 | 36 | ||
| PurchaseofFixedAssets | -20 | -48 | ||
| /fromCash(usedin)(B)Netinvestingactivities | -179 | 9 | ||
| CashflowsfromfinancingActivities | ||||
| Proceedsfromofsharesissue | 7 | 5 | ||
| /Proceeds(Repayment)ofDebentures | 300 | - | ||
| ofdividendincludingdividenddistributionPaymenttax | -188 | -151 | • | NCDs raised in Q1 FY21 |
| Proceeds/(Repayment)ofofdebentures | -170 | -300 | • | Payment of interim dividend |
| ofLiabilityRepaymentLease | -12 | - 9 | ||
| paidandofdebenturespaidInterestcost | -34 | -59 | ||
| /fromCash(usedin)financing(C)Netactivities | -97 | -513 | ||
| /(decrease)cashandBankbalancesNetincreasein | 555 | -93 | • | Cash / Bank includes FD's with maturity |
| Cash/BankbalanceofBalancesOpening | 24 | 117 | less than 3 months | |
| Cash/BankClosingBalanceofBalances | 579 | 24 |
| Particulars | AsMar21onRsCrs | AsMar20onRsCrs | AsDec20onRsCrs |
|---|---|---|---|
| CashandCashEquivalent | 579 | 24 | 443 |
| OtherBankBalances | 25 | 24 | 24 |
| CurrentInvestment | 770 | 541 | 818 |
| Less:TotalDebt* | 479 | 350 | 479 |
| Cash/(Debt)Net | 895 | 239 | 807 |
| Debt/EquityNet | NA | NA | NA |
| Debt/EBIDTA(Annualised)Net | NA | NA | NA |
o Company's cash conversion cycle continues to remain strong on back of efficient working capital management and is visible in increasing net cash and equivalents over the period.
Key Financial Ratios
EBIDTA Margins
PBT Margins
RoCE
