Crompton Greaves Consumer Electricals Ltd. · NSE:CROMPTON
Crompton Greaves Consumer Electricals — Q4 FY24 Earnings Presentation
37 slides from Crompton Greaves Consumer Electricals's earnings presentation, May 16, 2024
Slide 1: Exchange filing cover letter: Investor Presentation
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 Email: crompton.investorrelations
Slide 2: Q4 & FY24 Investor Presentation
Q4 & FY24 Investor Presentation 16th May 2024
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 Environment Scan Q4 & FY24 Performance Index Financial Statements ESG Performance
Slide 5: Crompton 2.0
Crompton Crompton 2.0
Slide 6: Crompton 2.0 delivering results: Highest-ever quarterly revenue
Crompton 2.0 delivering results: Highest-ever quarterly revenue; Standalone business delivered strong performance with double-digit revenue growth and strong EBIT margins Crompton 2.0 was introduced in Jun’23 with the objective of: Accelerated growth at healthy margins to deliver strong competitive
Slide 7: Crompton 2.0 delivering results: ECD strong, Lighting stabilizing
Crompton 2.0 delivering results: Consistent strong ECD segment performance; Lighting segment showing promising signs of stabilization Strong double-digit ECD revenue growth across categories Lighting revenue growth improved in Q4 amidst persistent in Q4 with robust ECD EBIT margin of 17.2% (+80 bps)
Slide 8: Crompton 2.0 delivering results: Investments in brand, innovation and people
Crompton 2.0 delivering results: Since Jun’23 significant investments have been made towards brand, innovation and people which has helped to deliver double- digit revenue growth Stepped-up brand investments Continued focus on innovation • Across categories, launched several multi-media marketing ca
Slide 9: 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 10: Crompton 2.0: Q4 Update
Crompton 2.0: Q4 Update 1 2 3 4 Premiumization GTM excellence Brand Investments Innovation ▪ Premium Fans saliency ▪ E-com delivered Rs. 100 Cr+ ▪ Launched marketing ▪ 3 patent applications filed, improved by 300 bps YoY to for 3rd consecutive quarter; campaign for Air Coolers and 6 patents granted
Slide 11: Environment Scan
Crompton Environment Scan
Slide 12: Current macroeconomic environment: Strong GDP expectations for FY25
Current macroeconomic environment: Strong GDP expectations for FY25; Core inflation has softened considerably; Consumption demand & manufacturing output for consumer durables are improving Private Consumption, the largest component of GDP (~55-60%), Household consumption expenditure towards consumer
Slide 13: Quarter Highlights
Crompton Quarter Highlights
Slide 14: Q4 Highlights: Strong performance across categories in ECD
Q4 Highlights: Strong performance across categories in ECD; Lighting back on growth track; Butterfly turnaround underway 1 Highest-ever standalone revenue at Rs. 1,797 Cr (+12% YoY) • Led by double-digit ECD revenue growth of 14% YoY with strong performance across categories: Fans (+13% YoY), Pumps
Slide 15: FY24 Highlights: Double-digit revenue growth; margins start to expand
FY24 Highlights: Led by Crompton 2.0 delivered double-digit revenue growth; margins start to expand 1 Standalone revenue at Rs. 6,388 Cr (+10% YoY) led by strong performance in ECD segment • Fans: Volume-led growth across categories wherein premium ceiling fan and TPW category grew strongly (>20% Yo
Slide 16: Crompton (Standalone) Segment Performance
Crompton (Standalone) Segment Performance Rs. Cr Segment Q4 FY24 Q4 FY23 YoY Q3 FY24 QoQ FY24 FY23 YoY Revenue ECD 1,516 1,326 14% 1,209 25% 5,392 4,756 13% Lighting 281 278 1% 249 13% 996 1,054 -5% Rs. Cr Segment EBIT Q4 FY24 Q4 FY23 YoY Q3 FY24 QoQ FY24 FY23 YoY ECD 253 218 16% 164 54% 775 789 -2%
Slide 17: Crompton Performance
Crompton Crompton Performance
Slide 18: ECD performance: 14% YoY growth led by robust performance
ECD performance: 14% YoY growth led by robust performance across categories; premiumization and mix driving consistent improvement in EBIT margins Performance Highlights 1 Fans: Strong growth of 13% YoY in Q4 FY24 and 11% YoY in FY24 Revenue (Rs. Cr) o Driven by higher share of premium ceiling fans,
Slide 19: Lighting performance: Continued turnaround in performance
Lighting performance: Continued turnaround in performance Performance Highlights 1 Lighting Revenue growth at 1% YoY in Q4 FY24 and -5% YoY in FY24 Revenue (Rs. Cr) ❑ B2C segment: o Healthy volume growth in ceiling lights, battens and accessories, though value growth of battens & ceiling lights rema
Slide 20: Multiple marketing activities in Q4 to Strengthen Brand Awareness
Multiple marketing activities in Q4 to Strengthen Brand Awareness Lights campaign to drive awareness Social media creatives across categories 118 posts in Q4 FY24 vs 65 posts in Q4 FY23 High Impact Campaign for Water Heaters in Q4 55%+ Reach @5+ freq. in key markets Launch of fans campaign with pres
Slide 21: Key marketing campaigns & BTL activities during the year
Key marketing campaigns & BTL activities during the year High impact multi-media campaigns across different categories to drive brand awareness BLDC Fans Ceiling Lights Mixers Air Coolers Water Heaters On ground and OOH advertising 80+ Influencer videos across High visibility branding at 3000+ store
Slide 22: New product launches in Q4
New product launches in Q4 Groove NXT Optimus Sound Comfort Visualine Premium exhaust 1 star rated; (65/100L) 80W Linear under fan Fist in market Regmote fan Low Noise Operation & High Canopy with IP 66 (operates on both regulator & Air Delivery - 18” Fan Protection remote); AL winding Optimus Chimn
Slide 23: Awards & Accolades
Awards & Accolades Smart Manufacturing in Consumer 5 Prestigious EHS Awards Durables OHSSAI 8th Annual HSE Excellence & CNBC-TV18 Zetwerk Smart Manufacturing Summit 2024 ESG Global Awards 2023 Testament to our unwavering commitment to excellence in manufacturing practices 22
Slide 24: Recognition & Achievements
Recognition & Achievements India Design Mark (IMARK) India Design Council, Ministry of Commerce & Industry, Most Preferred Featured under ‘The Government of India Workplace 2024-25 Next Leaders’ category Silentpro Blossom Smart Energion Roverr Smart Esteemed recognition for design excellence & innov
Slide 25: Butterfly Performance
Crompton Butterfly Performance
Slide 26: Butterfly Performance
Butterfly Performance Performance Highlights ❑ Core categories revenue sustained along with stable market share, reflecting continuing Revenue (Rs. Cr) 1 brand strength ❑ Regional Chain Stores revenue continued to grow for four consecutive quarters. 1,057 ❑ Continued investment in new product launch
Slide 27: Glimpse of Marketing Activities, Consumer Interactions & New Product Launches in Q4
Glimpse of Marketing Activities, Consumer Interactions & New Product Launches in Q4 Social Media Demo activation Engagement and interaction with the core TG on popular social ‘Shakti’ Series in Gas media platforms. Demo at key retail outlets in TN & KL to drive Stoves Total posts: 69 | Contests: 2 |
Slide 28: Financial Performance
Crompton Financial Performance
Slide 29: Standalone Q4 & FY24 Financial Performance
Crompton Standalone Q4 & FY24 Financial Performance: Strong performance with double-digit revenue growth and strong EBIT margins Rs. Cr Q4 Highlights Particulars Q4 FY24 Q4 FY23 Y-o-Y Q3 FY24 Q-o-Q FY24 FY23 Y-o-Y ▪ Robust performance across Net Sales 1,797 1,604 12% 1,458 23% 6,388 5,809 10% catego
Slide 30: Consolidated Q4 & FY24 Financial Performance
Crompton Consolidated Q4 & FY24 Financial Performance: Q4 EBITDA margin at 10.4% due to higher A&P spends, EPR impact of Rs. 15 Cr and Butterfly turnaround underway Rs. Cr Particulars Q4 FY24 Q4 FY23 Y-o-Y Q3 FY24 Q-o-Q FY24 FY23 Y-o-Y Net Sales 1,961 1,791 9% 1,693 16% 7,313 6,870 6% Less: Material
Slide 31: ESG Performance
Crompton ESG Performance
Slide 32: ESG Ratings: Recognized by reputed ESG agencies
ESG Ratings: We have been recognized by reputed ESG agencies We have significantly increased our Dow Jones Sustainability ESG Rating by Sustainalytics Indices (DJSI) Scores (Global) Dow Jones Sustainability Indices (DJSI) Rating YoY 94 87 Secured 7th Rank 41 47 Globally in DHP 34 Household Durables
Slide 33: ESG Performance: Energy Efficiency Improvements in FY24
ESG Performance: Examples of Energy Efficiency Improvements in FY24 Ceiling Fan Lighting Bulb (B2C) 90 lm/w 105 lm/w Efficacy Efficacy 30% Energy Efficiency Achieved, Transition from Before After Conventional to BEE Star Rated Fan • Avg. 17% Luminous Efficacy Improved in LED Bulb • As a Part of BEE
Slide 34: Several CSR Initiatives were introduced during the year
Several CSR Initiatives were introduced during the year Prioritizing 40,000+ lives touched through water conservation initiatives environment impact 64 Cr Litre water saved through irrigation Promoting sustainable 190+ water conservation structures build agriculture practices and 91 Cr Litre water p
Slide 35: Key Strategic Tenets
Crompton Key Strategic Tenets
Slide 36: Continued to focus on Crompton 2.0
Continued to focus on Crompton 2.0 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 & positioning
Slide 37: Registered Office and contact details
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: crompton.investorrelations@crompton.co.in Connect with us on www.crompton.co.in
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