Crompton Greaves Consumer Electricals (Crompton Greaves) saw a significant surge in its stock price on Monday, November 18, 2024. The company’s shares jumped by 7.08%, reaching an intraday high of ₹397.50 per share. This remarkable increase came on the back of the company’s impressive financial performance for the September quarter of the 2025 fiscal year (Q2FY25).
Investors who are considering share market investment are closely monitoring such strong results, given the positive outlook Crompton Greaves has presented.
Profit growth and revenue increase
Crompton Greaves reported robust year-on-year (YoY) profit growth for Q2FY25. The company's net profit surged by 28.6%, rising to ₹125 crore from ₹97.2 crore in the same quarter of the previous fiscal year. This growth highlights the company’s ability to navigate market challenges and deliver solid returns for its stakeholders.
Meanwhile, the company’s revenue from operations also showed a positive trajectory. It grew by 6.4%, reaching ₹1,896 crore in Q2FY25, compared to ₹1,782.3 crore during the same period in FY24. This increase in revenue signals a strong demand for its diverse product offerings, which include fans, pumps, water heaters, and other electrical appliances.
Improved operating performance
Crompton Greaves also saw a notable improvement at the operating level. The company’s earnings before interest, tax, depreciation, and amortisation (EBITDA) rose by 16.6% to ₹203.4 crore in Q2FY25, up from ₹174.5 crore in Q2FY24. This growth reflects the company’s enhanced operational efficiency and cost control measures.
Furthermore, the company’s EBITDA margin expanded by 90 basis points (bps) to 10.7% in Q2FY25, compared to 9.8% in Q2FY24. This expansion in the margin indicates that Crompton Greaves has been able to manage its costs effectively while increasing its profitability.
Market performance and outlook
Crompton Greaves has a market capitalisation of ₹25,063.72 crore, as per the Bombay Stock Exchange (BSE). As of 12:31 PM on November 18, 2024, the company's shares were trading at ₹389.40, up by 4.90% from the previous session. This strong performance is a testament to investors' confidence in the company’s future prospects, making it an attractive option for share market investment.
Over the past 52 weeks, Crompton Greaves' stock has fluctuated between a high of ₹483.65 and a low of ₹262.10 per share. Despite the recent surge, the stock still has room for growth, especially given the positive financial results and the company's continuous efforts to improve its product range and operational efficiency.
Conclusion
Crompton Greaves’ impressive Q2 performance, with a nearly 29% YoY increase in profit, highlights its strong fundamentals and efficient operations. The company’s solid revenue growth, enhanced margins, and positive market performance suggest it is well-positioned for further growth in the coming quarters.
Investors looking for opportunities in the share market investment space will likely view Crompton Greaves as a promising option, given its strong market position and robust financial results.
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