Analysts at Emkay Research say that the market share gains and stable margin in a tough demand scenario are key positives
Crompton Greaves Consumer Electricals' (Crompton Consumer) March 2020 performance, too, showed the impact of Covid-19 led supply disruption. However, profit margin maintained its strong trajectory, improving sequentially due to significant cost control and superior sales-mix. While sustenance of this trend will be eagerly watched, analysts believe Crompton Consumer is better placed compared to peers. The reasons include low discretionary nature of products (fans, lighting and pumps), lesser dependence on seasonal products for revenue, and limited exposure to B2B or wholesale segment.
Crompton Consumer, which saw loss of March-end sales post lockdown, posted 15 per cent year-on-year decline in revenues during January-March quarter. Though operating profit declined in line with fall in revenue, operating profit margin at 13.8 per cent was
First Published: May 26 2020 | 01:51 AM IST