Advertising spends and a one-time labour provision weigh on margins even as revenue growth remains steady
Crompton Greaves Consumer Electricals reported a decline in consolidated net profit for the December quarter, as higher advertising expenditure and a one-time provision linked to India’s new labour regulations weighed on earnings.
The company posted a consolidated net profit of Rs 101 crore for the quarter ended 31 December, down 9.8 per cent from Rs 112 crore in the year-ago period, according to an exchange filing. Total expenses during the quarter rose nearly 8 per cent year on year.
Revenue from operations grew 7.3 per cent year on year to Rs 1,898 crore, compared with Rs 1,769 crore in the corresponding quarter last year, supported by steady demand across its product portfolio.
At the operating level, earnings before interest, tax, depreciation and amortisation (Ebitda) increased marginally to Rs 194.6 crore from Rs 191 crore a year earlier. However, margins softened, with Ebitda margin declining to 10.3 per cent from 10.8 per cent in the year-ago period, although it remained ahead of Street expectations of 8.9 per cent.
The company said it recognised an incremental exceptional liability of around Rs 20.04 crore during the quarter after reassessing employee benefit obligations under the New Labour Codes. It added that any further differential impact would be accounted for once the rules are formally notified.
Separately, Crompton Greaves Consumer Electricals said it plans to enter the domestic electrical wires and cables segment, with the launch of insulated wires and cables scheduled towards the end of March 2026.
Ahead of the earnings update, shares of Crompton Greaves Consumer Electricals closed 1.11 per cent lower at Rs 243.90 on the National Stock Exchange.
