Crompton Greaves Consumer Electricals Limited

New Delhi

The Board of Directors, at its meeting held on 24th July 2020 approved the results of the Company for the quarter ended 30th June 2020. Sales for the quarter was Rs. 713 Crs. Recovery started in May and continued in June across all product groups. In June, ECD and B2C Lighting business (excl EESL) reached ~90% of last year levels. PBT margin increased sequentially as accelerated cost reduction programmes neutralized the negative operating leverage due to Covid-19. Continued drive on collections delivered a very good cash flow.Commenting on the Quarter results, Company’s Managing Director, Shantanu Khosla said “During these unprecedented times, the health and safety of our employees received our highest attention. Business confidence picked up in May and the revival gathered pace in June across all product categories.

The Company’s robust cost management and operational efficiency programmes aided in improving margins sequentially. However, Covid -19 had a significant adverse impact on the Company’s volumes because of lockdowns. Even as the gradual unlocking continues, fresh restrictions and temporary lockdowns imposed in select cities, extend the tenure of uncertainty. Thus, it would be premature to say that the problems are completely behind us. Cash conversion recorded significant improvement supported by actions on driving collections and working capital management. Margin resilience and robustness of the cash conversion cycle were key highlights of this quarter’s performance.”