Crompton Greaves Consumer Electricals Limited — PPTs, 11-06-2025: Investor Presentation

1. Financial Highlights:

Crompton posted 10% YoY revenue growth to Rs. 7,028 Cr for FY25, driven by an 11% rise in the Electrical Consumer Durables segment. Q4 revenue grew 5% YoY despite subdued demand. EBIT jumped 18% to Rs. 735 Cr, lifting margins to 10.5%, helped by lower input costs even with higher advertising spends. PAT outpaced growth at 21% to Rs. 563 Cr. EBIT margins improved notably in ECD (up 100 bps to 15.4%) and lighting (up 120 bps to 11.8%). Alternate channels like e-commerce delivered strong double-digit growth, particularly in appliances. The Butterfly brand showed a healthy recovery with 12% revenue growth and sharp margin gains.

2. Strategic Initiatives & Growth Drivers:

Crompton accelerated brand marketing (A&P up 18%), invested over Rs. 100 Cr in innovation, and advanced digital transformation via “Crompton 2.0.” It launched 170+ energy-efficient, digitally connected products featuring BLDC motors and platform-first approaches (Nucleus & X-Tech). Planned Rs. 350 Cr capex focuses on expanding manufacturing, including a greenfield fan plant. Entry into solar rooftop solutions and kitchen appliances targets market diversification. Go-to-market transformation is strengthening digital sales and partner engagement.

3. Business Developments:

The company expanded its portfolio with premium induction and smart exhaust fans, solar and agriculture pumps, and kitchen appliances like cooktops and chimneys. Remote monitoring for solar pumps enhances after-sales support. Butterfly maintained growth momentum and drove margin improvement. Sustainability initiatives earned Crompton global ESG recognition and several design and safety awards in FY25.

4. Market Position & Competitive Advantage:

Crompton holds leadership in fans and residential pumps, plus a leading e-commerce presence for water heaters and air coolers. Its vast retail footprint (3 lakh+ outlets) and strong service network support brand equity. The platform-first innovation model and digitized GTM strategy provide operational agility and cost efficiency, strengthening its moat. The company is well poised to capture demand in energy-efficient appliances and renewable home energy markets.

5. Investor Implications:

Robust double-digit revenue and profit growth with margin expansion signals strong growth potential despite challenging demand. Investments in product innovation, digitalization, and market expansion enhance scalability. Execution of the greenfield capex and solar rooftop initiatives remain key growth catalysts. Sustained innovation and brand strength support durable competitive edge, with execution risks linked to evolving consumer preferences and market competition to monitor.