Strong Revenue Growth of 15.4% for Crompton

MUMBAI:
Board of directors, in their meeting held on 29th July, 2016 approved the quarterly results of Crompton for the Quarter ended 30th June, 2016.
Total Income was Rs. 1,120.8 Crs registering a growth of 15.4% over the corresponding period last year. The Company has posted an Operating Profit (PBIT before corporate expenses and one-time Items) of Rs. 172.5 Crs for the quarter, registering a growth of 24.4% year on year.
Operating Profit margin improved from 14.3% last year to 15.4%. For the above comparison purposes, the Company has considered the Sales and Segment EBIT numbers of the Consumer business as reported by Crompton Greaves Ltd, for the corresponding period last year.
Company’s focus continues to be on executing with excellence on the chosen five key strategic drivers. (i) Investing and building the Crompton brand (ii) Developing consumer relevant innovation
(iii) Strengthening the go to market structure (iv) Driving operational efficiencies & (v) Building
organizational capabilities
In the quarter, the Company launched its brand campaign and early results are indicating an improvement in brand awareness. Avancer E-Sense a temperature sensing fan was launched in May 2016. The actions on Go To Market initiatives are making progress towards a more structured secondary distribution.
The ERP implementation project has started and is on track to go live in Q4 of this fiscal. Cost saving initiatives are on track and the results are reflected in the higher margins in the quarter.
Commenting on the Quarter results, Company’s Managing Director Shantanu Khosla said “We have started the year continuing the momentum of last couple of quarters. The revenue growth of 15.4% in a seasonally strong quarter was led by strong performance in all our key categories. Our efforts on Building the Crompton Brand have commenced during the quarter. Our actions on executing operational efficiencies are also showing encouraging results ensuring that we grew our profits faster than our topline. These results give us confidence that our strategic choices are right.”