Crompton Greaves Consumer Electricals Ltd. · NSE:CROMPTON
Crompton Greaves Consumer Electricals — Q2 FY24 Earnings Presentation
34 slides from Crompton Greaves Consumer Electricals's earnings presentation, Nov 4, 2023
Slide 1: Exchange cover letter: Investor Presentation and Press Release
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: November 03, 2023 To, To, B
Slide 2: Investor Presentation Q2 FY24
Investor Presentation Q2 FY24 3rd November 2023
Slide 3: Disclaimer
Disclaimer This presentation does not constitute an offer from Crompton Greaves Consumer Electricals Ltd. or any of its affiliates (“Crompton”) to any party and the information contained herein will not form the basis of any contract. Neither Crompton nor any of their respective affiliates, sharehol
Slide 4: Index
Crompton 2.0: Transformation in Progress Environment Scan Index Quarter Performance Financial Statements
Slide 5: Crompton 2.0: Transformation in Progress
Crompton 2.0: Transformation in Progress
Slide 6: Crompton 2.0: Key tenets to drive future growth
Crompton 2.0: Key tenets to drive future growth Crompton 2.0 Enabled & empowered organization Crompton 1.0 Consumer need led innovation Pole position in core categories Premiumization of the portfolio XXXX Successful foray into the kitchen Supply chain excellence (quality, cost) Innovation capabilit
Slide 7: Crompton 2.0 Update
Crompton 2.0 Update 1 2 3 4 Premiumization GTM excellence Brand Investments Innovation ▪ Premium Fans saliency ▪ Doubled E-commerce ▪ A&P spends grew by 31% ▪ New launches in Premium improved to 28% (+250 bps business YoY Fans & BLDC categories YoY) ▪ Alternate channel saliency ▪ Introduced new prod
Slide 8: Change in Chairman & New Appointments to Board
Change in Chairman & New Appointments to Board Mr. D. Sundaram New Appointments Mr. D. Sundaram Mr. Anil Chaudhry Mr. Sanjiv Kakkar Chairman, Independent Director Independent Director Independent Director • On Board of Crompton since 2015 • Ex CEO & MD of Schneider • Distinguished career at Unilever
Slide 9: New Board Composition
New Board Composition Board of Directors Mr. D. Sundaram Mr. Shantanu Khosla Mr. Promeet Ghosh Mr. P. M. Murty Ms. Smita Anand Chairman, Independent Director Executive Vice Chairman Managing Director & CEO Independent Director Independent Director Mr. P. R. Ramesh Ms. Hiroo Mirchandani Mr. Anil Chau
Slide 10: Environment Scan
Crompton Environment Scan
Slide 11: Navigating the current environment: Demand uptick from Sep'23 onwards
Navigating the current environment: Demand uptick from Sep’23 onwards owing to Festive season India GDP growth expected to slow down over the next 2 quarters – Consumer confidence on it‘s recovery path after a brief pause in Lower GDP growth expectations for FY24 vs FY23 Jul’23 Indian GDP growth1 %
Slide 12: Quarter Highlights
Crompton Quarter Highlights
Slide 13: Key Highlights for the Quarter
Key Highlights for the Quarter 1 Industry leading growth of 17% YoY in ECD due to strong momentum in Fans & Small Domestic Appliances. Pumps registered growth of 10% YoY 2 Lighting EBIT margins improved by 250 bps with absolute EBIT growth of 16% YoY. Industry level challenges continued in B2C leadi
Slide 14: Consolidated Segment Performance
Crompton Consolidated Segment Performance Rs. Cr Segment Revenue Q2 FY24 Q2 FY23 YoY Q1 FY24 QoQ H1 FY24 H1 FY23 YoY ECD 1,238 1,062 17% 1,429 -13% 2,667 2,409 11% Lighting 239 270 -11% 229 4% 468 532 -12% Butterfly 306 368 -17% 219 40% 525 621 -16% Total 1,782 1,700 5% 1,877 -5% 3,659 3,562 3% Rs.
Slide 15: Crompton Performance
Crompton Crompton Performance
Slide 16: ECD Performance: Strong traction driven by Fans & Appliances
ECD Performance: Strong traction driven by Fans & Appliances Performance Highlights Revenue (Rs. Cr) Industry leading segment growth of 17% YoY in Q2; H1 FY24 growth of 11% YoY ❑ Fans witnessed strong growth of 18% YoY in Q2 driven by strong performance in Ceiling Fans & TPW categories; 2,667 o Sign
Slide 17: Lighting: Margin expansion despite Revenue decline
Lighting: Margin expansion despite Revenue decline Performance Highlights Revenue (Rs. Cr) 1 Lighting segment declined by 11% YoY ❑ Industry level challenges continue in B2C ❑ Price erosion was witnessed across players as competition remains taut 532 468 ❑ Signs of recovery in B2B with flattish dema
Slide 18: Glimpse of Marketing Activities rolled-out in Q2
Glimpse of Marketing Activities rolled-out in Q2 to strengthen brand awareness Mixers campaign to drive awareness Digital: Influencer videos to drive discoverability High Impact Campaign Fans for Mixers launched; 6 Influencer Videos, 3.8 Mn+ Subscribers, 1Lakh+ Views 40%+ Reach Social media creative
Slide 19: New product launches in Q2
New product launches in Q2 Ceiling Fans: Mixer Grinders: Fans ▪ Hyperjet – Fan with remote control, high air delivery, Anti Appl. • BOLTMIX series- 750W mixer range, heavy duty rust aluminium blades, modern slim motor design powertron motor & motor venti X technology • QuestaRyl X- 750W, powertron m
Slide 20: Butterfly Performance
Crompton Butterfly Performance
Slide 21: Butterfly Performance: Focus on optimizing channel mix and shift in festive season
Butterfly Performance: Focus on optimizing channel mix and shift in festive season Performance Highlights Revenue (Rs. Cr) 1 Q2 Revenue at Rs. 306 Cr (-17% YoY); Retail and Modern Trade continued to grow amidst demand slowdown 621 ❑ Shift in festive season to Q3 has resulted in delayed pre-buying; O
Slide 22: Glimpse of Marketing Activities & Consumer Interactions
Glimpse of Marketing Activities & Consumer Interactions Marketing Campaigns Digital Campaigns Consumer Interactions Distributor Meet Strategic ATL Interventions Reach: 62.5 Mn; On-ground events: 1) presence in out-of-home; “One High-octane Distributor Meet: Engagement: 1.45 Cr Kalyanamalai and The H
Slide 23: New Product launches in Q2
New Product launches in Q2 Cookware Range & Cooking Food Processing Water Solutions Coral Non-stick Matchless Shakti Series Cookware Multi-Kettle (Bolt 3B Shakti/Ace Shakti) Commercial Juicer Economical Food (Juice Master) Processor (Online exclusive) Tez Tri-ply cookware Magnum Series TTWG (Magnum
Slide 24: Award: Iconic Brand of India
Award: Iconic Brand of India ‘Butterfly’ brand was honored with the prestigious title of 'Iconic Brand of India' at the 6th edition of the Iconic Brands of India (IBI) event, presented by The Times Group. 23
Slide 25: Financial Performance
Crompton Financial Performance
Slide 26: Consolidated Q2 Financial Performance
Crompton Consolidated Q2 Financial Performance: Revenue growth at 5% YoY; Margins remained muted Rs. Cr Particulars Q2 FY24 Q2 FY23 Y-o-Y Q1 FY24 Q-o-Q Highlights Net Sales 1,782 1,700 5% 1,877 -5% Less: Material Cost 1,224 1,153 6% 1,298 -6% ▪ Revenue growth of 5% YoY driven by Material Margin 558
Slide 27: CSR
Crompton CSR
Slide 28: Several initiatives implemented in Q2
Several initiatives implemented in Q2 Care for community Empowering drought hit Awards & Recognitions villages to improve water security and sustaining farmers’ livelihood through integrated watershed development program Building great place to work A dynamic framework that embodies our values and a
Slide 29: Key Strategic Tenets
Crompton Key Strategic Tenets
Slide 30: Continued to focus on Crompton 2.0 Tenets
Continued to focus on Crompton 2.0 Tenets Crompton 2.0: Accelerated growth at healthy margins to deliver strong TSR Protect and grow Transform Foray into new Win in the Kitchen the core Lighting business segments • Fans: Strengthen the core & • Small domestic appliances: • Product innovation & posit
Slide 31: Registered Office
Registered Office: Crompton Greaves Consumer Electricals Limited, Equinox Business Park, 1st Floor, Tower 3, LBS Marg, Kurla (W), Mumbai - 400070, Maharashtra, India +91 22 6167 8499 For any query, please write us at: [email protected] Connect with us on www.crompton.co.in
Slide 32: Press Release: Results for Q2 FY24
Press Release Crompton Greaves Consumer Electricals Ltd. Announces its Results for Q2 FY24 Strong growth of 17% YoY in ECD led by Fans and Appliances categories; Lighting delivered robust margins in the face of competitive intensity Mumbai, 3rd November 2023: Crompton Greaves Consumer Electricals Lt
Slide 33: Press Release: Standalone, Consolidated and Segment Financials
Press Release Standalone Financials: Particulars (Rs. Crs) Q2 FY24 Q2 FY23 Y-o-Y Q1 FY24 Q-o-Q Revenue 1,476 1,332 11% 1,657 -11% Material Margin 445 416 7% 487 -9% Material Margin (%) 30.1% 31.3% -120 bps 29.4% +70 bps EBITDA 151 151 0% 166 -9% EBITDA Margin (%) 10.2% 11.3% -110 bps 10.0% +20 bps P
Slide 34: Press Release: About CGCEL
Press Release About Crompton Greaves Consumer Electrical Ltd. (CGCEL): CGCEL is India’s market leader in Fans, no. 1 player in Residential Pumps and has leading market positions in its other product categories. The Company manufactures and markets a wide spectrum of consumer products - Fans, Lights,
Crompton Greaves Consumer Electricals — Q2 FY24 Earnings Presentation on 6ix