Crompton Greaves Consumer Electricals Limited (Crompton) has received a Letter of Empanelment from Maharashtra State Electricity Distribution Company Limited (MSEDCL) for a significant order worth approximately ₹49.00 crore (excluding GST). This development marks a notable business win for the company in the renewable energy sector.

Order Details

The order involves 1,884 off-grid solar photovoltaic water pumping systems under the PM Kusum Scheme B, also known as the Mangel Tyala Saur Krushi Pump Yojana. Crompton will be responsible for the design, manufacture, supply, transport, installation, testing, and commissioning of these systems across various districts in Maharashtra.

Scope of Work

Crompton will deliver Off-grid DC Solar Photovoltaic Water Pumping Systems (SPWPS) in three capacity variants:

• 3 HP
• 5 HP
• 7.5 HP

These pumps will be installed at identified farmers' sites throughout Maharashtra. The contract also includes:

• Complete system warranty
• Repair and maintenance services
• Implementation of a Remote Monitoring System (RMS)

All these services will be provided for a period of 5 years.

Project Timeline

The company is expected to complete the project within 60 days from the date of issuance of the work order.

Strategic Importance

This order is significant for Crompton as it strengthens the company's position in the renewable energy sector, particularly in solar-powered agricultural solutions. It aligns with India's push towards sustainable energy practices in agriculture and demonstrates Crompton's capability in delivering large-scale solar projects.

Disclosure and Compliance

Crompton has made this disclosure in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company confirmed that this contract does not fall under related party transactions, and none of its promoter groups or group companies have any interest in MSEDCL.

This order not only represents a substantial business opportunity for Crompton but also contributes to the broader goal of promoting clean energy solutions in India's agricultural sector.

Crompton Greaves Consumer Electricals Ltd. , a leading player in India's consumer durables sector, has released its financial results for the first quarter, revealing a decline in profit and revenue amid challenging market conditions.

Financial Performance

The company reported a consolidated net profit of ₹123.90 crore for Q1, down from ₹152.35 crore in the same quarter last year, marking a decrease of 18.7%. This fall in profit was steeper than analyst estimates, which had projected a net profit of ₹154 crore.

Revenue from operations also saw a decline, dropping to ₹1,998.34 crore from ₹2,137.69 crore in the corresponding quarter of the previous year, representing a 6.5% year-over-year decrease. The company's performance fell short of market expectations, which had anticipated revenue of ₹2,160 crore.

Segment Performance

Crompton Greaves' financial results revealed mixed performances across its business segments:

Electric Consumer Durables (ECD)

• Revenue: ₹1,586.25 crore (down from ₹1,726.62 crore)
• EBIT: ₹211.63 crore (down from ₹258.66 crore)

Lighting Products

• Revenue: ₹232.96 crore (marginally up from ₹233.33 crore)
• EBIT: ₹29.61 crore (up from ₹20.85 crore)

Butterfly Products

• Revenue: ₹179.13 crore (slightly up from ₹177.74 crore)
• EBIT: ₹7.56 crore (up from ₹4.10 crore)

Operational Highlights

Despite the overall decline, Crompton Greaves highlighted several positive developments:

• Maintained a strong material margin at 32.1% despite the challenging environment.
• Lighting segment showed improved profitability with EBIT margins expanding by 370 basis points to 12.6%.
• Butterfly Gandhimathi Appliances Ltd., a subsidiary, achieved strong EBITDA growth of 39% year-over-year.
• Secured its largest-ever solar pumps order of ₹101 crore from Maharashtra Energy Development Agency (MEDA).

Management Commentary

Promeet Ghosh, MD & CEO of Crompton Greaves Consumer Electricals, commented on the results: "We navigated a challenging quarter due to unseasonal weather, impacting cooling products, offset by strong growth in solar pumps and small domestic appliances. Continued EBIT momentum in the lighting business, while revenue remained stable amidst ongoing price erosion."

He added, "During the quarter we gained market share in various categories demonstrating our resilience and robust execution capabilities. We remain focused on strengthening our brand, distribution, innovation, manufacturing, and people capabilities to drive future growth and capitalize on emerging opportunities."

Looking Ahead

While the company faced headwinds in Q1, management emphasized its commitment to sustainability and innovation. Crompton Greaves is focusing on building a resilient value chain, reducing greenhouse gas emissions, and integrating sustainability into every stage of product development.

As Crompton Greaves Consumer Electricals navigates through these challenging market conditions, investors and analysts will be closely watching the company's performance in the coming quarters for signs of recovery and growth.