Crompton Greaves Consumer Electricals Limited — Interim / Quarterly Report 2021

Jan 22, 2021

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Crompton Greaves Consumer Electricals Limited Registered & Corporate Office: Tower 3, 1[st] 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: January 22, 2021

To, BSE Limited (“BSE”), Corporate Relationship Department, 2ndFloor, New Trading Ring, P.J. Towers, Dalal Street, Mumbai – 400 001.	To, National Stock Exchange of India Limited (“NSE”) Exchange Plaza, 5thFloor, Plot No. C/1, G Block, Bandra Kurla Complex Bandra (East), Mumbai–400 051
BSE Scrip Code: 539876	NSE Symbol: CROMPTON
ISIN: INE299U01018	ISIN: INE299U01018
Our Reference: 115/2020-21	Our Reference: 115/2020-21

Dear Sir/Madam,

Sub: Highlights of Q-3 of FY 2020-21

This is in continuation of our letter dated January 22, 2021 regarding Outcome of Board Meeting held on January 22, 2021 wherein the Company had approved the following:

1. Unaudited financial results (Standalone & Consolidated) for the quarter and nine months ended December 31, 2020

2. Limited Review Report on the unaudited Financial results (Standalone and Consolidated) for the quarter and nine months ended December 31, 2020

3. Press release on the Unaudited Financial Results for the quarter and nine months ended December 31, 2020

In this regard please find attached the highlights of Q-3 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 Digitally signed by PRAGYA SAHAL DN: c=IN, o=Personal, title=8504, pseudonym=86ad634a301e66489326e226bbe7f3845aebf4 b181bcbbaf31db6d0f7dae703e, postalCode=400074, st=Maharashtra, serialNumber=84c3cda8c48ae17c551bd8b9ee5a8312ce8a SAHAL c0972726393186cb59193af2751f, cn=PRAGYA SAHAL Date: 2021.01.22 21:29:27 +05'30' Pragya Kaul Company Secretary & Compliance Officer Encl: A/a

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Information Update – Q3 FY21 (Consolidated)

January 2021

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Table of Contents
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▪ Quarterly Update

▪ Key Highlights – Q3 FY 21

▪ Summary of Q3 Results

• Segment Details

• Cash Flow highlights

▪ Cash / (Debt)

• Key Financial Ratios

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Quarterly Update
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• Employee’s health and safety continues to company’s top most priority

• Most of the macro indicators have been reflecting a strong recovery for the Indian economy in Q3, higher liquidity in the markets and uptrend in recent GST collections point towards restoration of normalcy

• With migrant labourers returning back, factories & Logistics continue to operate above last year levels

• Regions that were hit hard due to prolonged lockdown (West) and natural calamities (East) in Q2 has returned to normalcy and has shown positive outlook

• Rural Economy seems to be more resilient and promising, further aided by our investment Rural Channel has witnessed exponential growth

• Certain supply chain disruptions were witnessed in northern states due to farmer’s agitation. However, our agile processes and nimble approach ensured no market opportunity was lost

• Company faced minor commodity headwinds in Q3 and the same are expected to increase further until commodity prices ease in the future

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Key Highlights – Q3
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▪ ECD Performance

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• Broad based growth across all business

• Strong performance by Fans driven by premium fans growing 51% GoLY

• Appliances business continues exponential growth with Geysers growing 50%

• Domestic pumps business grew by 25%

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▪ Lighting Performance

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• B2C Lighting LED continues to witness healthy volume growth of 13%

• o Lighting B2G business grew on back of KSEB tender & Odisha Project execution o Lighting B2B business continues to face challenges due to slow order pick by institutions

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▪ Material margins expanded during the quarter over last year by ~10 bps

o Benefits accruing from cost optimization program

o Lighting sustained double digits EBIT margins

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▪ Market Share gains and leveraging alternate channel

o E-commerce and MOR channel witnesses 53% growth in Q3 o Rural channel continued its superior growth of 88% in Q3 o We continued to gain market share in Fans (1%) and Appliances

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▪ Cash Conversion

o Cash conversion continues to be strong aided by efficient working capital management

Summary of Q3 Results • Marginal improvement v/s LY. Commodity cost headwind impacted sequential performance s • Increments effective 1st Oct • A&P activity stepped up • Other expenses higher due to increased activity • Additional interest on NCD’s raised in Q1FY21 • Higher investment surplus boosted investment income • LY tax included effect refund & interest thereon. Like to like PAT growth is 53% Q3 FY21 Q3 FY20 Q2 FY21 Rs. Cr Rs. Cr Rs. Cr Net Sales 1,348 1,071 25.8% 1,213 Less: Material Cost 916 729 25.6% 813 Material Margin 433 342 26.4% 400 as a % of Net Sales 32.1% 32.0% 33.0% Less: Employee Cost 93 77 20.1% 80 Advertisement & Sales Promotion 25 21 22.1% 25 Other Expenses 114 107 6.1% 104 EBIDTA 200 137 46.4% 191 as a % of Net Sales 14.9% 12.8% 15.8% Less: Depreciation & Amortization 7 6 7.2% 8 EBIT 193 130 48.3% 183 as a % of Net Sales 14.4% 12.2% 15.1% Less: Finance Cost 11 9 21.1% 11 Add: Other Income 20 18 11.7% 17 Profit Before Tax 202 139 45.4% 189 as a % of Net Sales 15.0% 13.0% 15.6% Tax Expenses 51 -22 -334.9% 47 Net Profit 151 161 -6.2% 142 as a % of Net Sales 11.2% 15.0% 11.7% Particulars GoLY

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Segment Details
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Segment Revenue

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Q3 FY21 Q3 FY20
Particulars GoLY
Rs. Cr Rs. Cr
Electrical Consumer Durables 1,036 787 32%
Lighting Products 312 284 10%
Total Income from Operation 1,348 1,071 26%
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Q2 FY21
Rs. Cr
932
282
1,213
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Segment EBIT

Particulars	Rs. Cr Q3	EBIT % FY21	Rs. Cr Q3	EBIT % FY20
Electrical Consumer Durables	205	19.8%	156	19.8%
Lighting Products	38	12.3%	20	6.9%
Total	243	18.0%	176	16.4%

Rs. Cr 196 Q2	EBIT % 21.0% FY21
33	11.7%
229	18.9%

Lighting margins continue to deliver double digit margins

Cash Flow Highlights
Particulars	Q3FY21	Q3FY20
	Rs Cr.	Rs Cr.
Profit before exceptional items and tax	202	139
Adjustments for:
Depreciation	7	6
Interest and other adjustments	-3	-4
(Increase) / Decrease in Working Capital	96	7	•	Improved collection and efficient
Cash from Operation	302	147		management of inventory aided WC
Taxes paid	-71	-30		efficiency
Net Cash from Operating Activities (A)	231	117
Cash flows from Investing Activities
Interest income	3	4
(Purchase) / sale of current investments (net)	215	-126
Purchase of Fixed Assets	-6	-10
Net Cash (used in) /from investing activities (B)	213	-132
Cash flows from financing Activities
Payment of dividend including DDT
Proceeds from issue of shares	1	4
Payment of dividend including dividend distribution tax	-188	-	•	Payment of interim dividend
Repayment of Lease Liability	-3	-
Interest paid and cost of debentures paid	-0	-1
Net Cash (used in) /from financing activities (C)	-190	3
Net increase / (decrease) in cash and Bank balances	254	-12
Opening balance of Cash/Bank Balances	189	50	•	Cash / Bank includes FD’s with maturity less
Closing Balance of Cash/Bank Balances	443	38		than 3 months

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Cash / (Debt)
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As on Dec 20 As on Dec 19 As on Sep 20
Particulars
Rs. Crs Rs. Crs Rs. Crs
Cash and Cash Equivalent 467 39 213
Current Investment 818 498 1,020
Less: Total Debt 479 350 479
Net Cash / (Debt) 807 188 755
Net Debt/Equity NA NA NA
Net Debt/EBIDTA (Annualised) NA NA NA
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o Company’s cash conversion cycle continues to reman strong and is visible in increasing net cash and equivalents over the period

o Company has also paid out Rs 188 crores dividend in Q3CY

*Excludes Interest Accrued on debt

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Key Financial Ratios
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Note: Last Year RoE includes impact of tax refund and interest thereon. Like to Like RoE of LY is 32.6%

*RoCE and RoE has been annualised

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Thank You