CROMPTON

Crompton 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 Tel: +91 22 6167 8499 F: +91 22 6167 8383 Date: January 28, 2022 W: www.crompton.co.in. CIN: L31900MH2015PLC262254 To, To, BSE Limited ("BSE"), National Stock Exchange of India Limited Corporate Relationship Department, ("NSE") 2nd Floor, New Trading Ring, Exchange Plaza, 5th Floor, P.J. Towers, Dalal Street, Plot No. C/1, G Block, Mumbai -400 001. Sandra Kurla Complex, Sandra (East), Mumbai -400 051 BSE Scrip Code: 539876 NSE Symbol: CROMPTON ISIN: INE299U01018 ISIN: INE299U01018 Our Reference: 134/2021-22 Our Reference: 134/2021-22 Dear Sir/Madam, Sub: Press Release & Highlights of Q-3 of FY 2021-22 This is in continuation of our letter dated January 28, 2022 regarding Outcome of Board Meeting held on January 28, 2022 wherein the Company had approved the Statement showing the Unaudited Financial Results (Standalone and Consolidated) for the quarter and nine months ended December 31, 2021. In this regard please find the following:- 1. Press release on the Unaudited Financial Results for the quarter and nine months ended December 31,2021;and 2. Highlights of Q-3 of FY 2021-22 You are requested to kindly take the above information on your record. Thanking you, For Crompton Greaves Consumer Electricals Limited ��� Company Secretary & Compliance Officer Encl: A/a Crompton Greaves Consumer Electricals Limited Standalone Results for Quarter Ended December 31, 2021 Business grew 7% with turnover of Rs 1410 crores. O ngoing premiu misation , Cost reduction and measured pricing mitigated commodity cost inflation, enabling us to maintain superior margins. Mumbai, January 28, 2022: The Board of Directors, at its meeting held on January 28, 2022 approved the results of the Company for the quarter ended December 31, 2021. Revenue for the quarter at Rs. 1410 crores registered a growth of 7% YoY (2 Year CAGR: 15%). EBIDTA margins were 14.3% as compared to 14.8 % in the same period last year. PAT was at Rs. 148 crores vs 147 Cr LY. Fans growth was driven by strong performance in the premium & decorative segments, leading to an all-time high market share. Appliances business continued to deliver robust growth based on excellent consumer offerings in the core categories of water heaters, mixer grinders and irons. B2C LED lighting grew in excess of 20%. Input prices remained elevated and were largely offset through a combination of mix improvement, calibrated pricing and cost reduction programs. This enabled the company to maintain its superior margin profile despite doubling its advertising spend during the quarter. We continue to invest in brand building, channel development and our R&D capabilities to innovate and bring futuristic products to our consumers. During the quarter, the company also opened a state- of-the-art R & D centre, housed in a 50000 sq. ft facility in Mumbai. Commenting on the Quarter results, Company’s Managing Director, Shantanu Khosla said “Health & safety of our employees continue to receive our highest attention, even as the third wave of the pandemic has created new challenges . The Electrical Consumer Durables business witnessed growth in most categories. B2C lighting business improved its growth trajectory. While commodity cost pressures sustained, timely actions have largely mitigated their impact and maintained margins.” About Crompton: Crompton is India’s market leader in fans, No. 1 player in residential pumps and has leading market positions in its other product categories. The Company manufactures and markets a wide spectrum of consumer products, ranging from fans, lamps and luminaries to pumps and household appliances such as water heaters, coolers, mixer grinders and irons. The Company has strong dealer base across the country and wide service network offering robust after sales service to its customers. Information Update – Q3 FY22 (Standalone) January 2022 Table of Contents ▪ Quarterly Update ▪ Key Highlights – Q3 FY 22 ▪ Summary of Q3 Results ▪ Segment Details ▪ Cash Flow highlights ▪ Cash / (Debt) ▪ Key Financial Ratios Quarterly Update • Health and safety of our employees continues to be of utmost importance to the company • We have implemented a strict WFH policy across all our offices since January 2022 • ~92% of our employees are fully vaccinated. • Sales operations (dealers, distributors and retailers including e-commerce and modern trade), manufacturing and logistics operations continue to function smoothly. • We have witnessed value led growth in most categories on back of higher base of Q3 LY which had impact of pent-up demand. • Continue to invest aggressively in brand building initiatives despite commodity inflation led pressure on margins. • Alternate channels such as Rural & E-Com continue to deliver. • Commodity prices remained elevated in Q3. • Cost reduction, mix improvement & pricing actions have mitigated the commodity led input cost increase. • Pre-paid Rs 150 crores of NCD’s during the quarter Key Highlights – Q3 ▪ ECD Performance (18% CAGR over Q3 FY20, Fans- 22% CAGR , Appliances- 28% CAGR; ECD 6% GoLY) o Broad based growth across all product lines. o Strong performance with a growth of 11% over last year in Fans driven by premium & deco fans o Appliance business continues growth trajectory with 13% GoLY driven by core categories Geysers & Irons. o Pump business was impacted by industry wide slowdown. ▪ Lighting Performance (B2C - 11% CAGR over Q3 FY20) o B2C Lighting LED continue to witness healthy value growth of 22% over last year. o Lighting B2G business continue to face slow order pick up. ▪ Material margins remain healthy at 31.7% o Our aggressive cost savings via Project Unnati, focus on premiumization and timely price hikes have enabled us to maintain material margins. ▪ Market Share gains and leveraging alternate channel o We continued to gain market share in Fans (+2.3%) o E-commerce and MT channel continued to deliver as expected; Rural channel continued its superior growth of 198% YoY ▪ Cash Conversion o We continue to maintain a healthy Balance sheet to support business requirements and invest in long term growth of the company. Summary of Standalone Q3 Results Q3 FY22 Q3 FY21 Q2 FY22 Particulars GoLY Rs. Cr Rs. Cr Rs. Cr Net Sales 1,410 1,323 6.6% 1,385 Less: Material Cost 963 896 7.6% 941 Material Margin 447 428 4.5% 443 as a % of Net Sales 31.7% 32.3% 32.0% Employee Cost 94 93 1.3% 96 Advertisement 30 11 171.0% 7 • Continue to invest in Other Expenses 121 128 -5.8% 126 brand building EBIDTA 202 195 3.3% 214 • Other expenses higher in as a % of Net Sales 14.3% 14.8% 15.5% line with activity Less: Depreciation & Amortization 10 7 47.9% 10 EBIT 191 188 1.7% 204 as a % of Net Sales 13.6% 14.2% 14.7% Less: Finance Cost 7 11 -36.8% 8 Add: Other Income 14 20 -30.8% 28 • Finance cost lower vs LY Profit Before Tax 199 198 0.5% 224 due to NCD pre-payment as a % of Net Sales 14.1% 14.9% 16.2% Tax Expenses 50 50 0.5% 54 Net Profit 148 147 0.5% 170 as a % of Net Sales 10.5% 11.1% 12.3% Segment Details Segment Revenue Q3 FY22 Q3 FY21 Q2 FY22 Particulars GoLY Rs. Cr Rs. Cr Rs. Cr Electrical Consumer Durables 1,099 1,036 6% 1,096 Lighting Products 311 287 8% 288 Total Income from Operation 1,410 1,323 7% 1,385 Segment EBIT E L T le ig o c t r h t in t a l ic g a l P P C r o a o d r n u t i s c c u t u m s l a e r r s D u r a b le s R s Q . C 2 2 1 3 4 3 r 3 3 6 F Y E 2 B 2 I T 1 1 1 9 0 7 % . . . 4 5 4 % % % R s Q . C 2 0 3 2 3 r 3 5 3 8 F E Y B 2 1 I T 1 1 1 % 9 1 8 . . . 8 6 0 % % % R s Q . C 2 3 3 2 6 2 r 0 3 3 F E Y B 2 2 I T 2 1 1 1 1 9 % . . . 0 4 0 % % % Cash Flow Highlights Particulars Q3 FY 22 Q3 FY 21 Rs Cr. Rs Cr. Profit before exceptional items and tax 199 198 Adjustments for: Depreciation 1 0 7 Interest and other adjustments 4 -3 (Increase) / Decrease in Working Capital 5 1 9 3 • Working capital reduction on back of Cash from Operation 264 295 production/inventory rationalization Taxes paid -59 -70 Net Cash from Operating Activities (A) 206 225 Cash flows from Investing Activities Interest income 7 3 (Purchase) / sale of current investments (net) 2 9 220 Investment in bank deposits (net) 2 0 0 Purchase of Fixed Assets -14 -6 Net Cash (used in) /from investing activities (B) 4 1 217 Cash flows from financing Activities Proceeds from issue of shares 1 1 Proceeds from Short Term Borrowings (Net) 127 - Payment of dividend including dividend distribution tax -0 - 188 Proceeds from debentures issued - 150 - • Pre-payment of debentures Repayment of Lease Liability -4 -3 Interest paid and Cost of debentures repaid -6 -0 Net Cash (used in) /from financing activities (C) -32 - 190 • Cash / Bank includes FD’s with maturity less Net increase / (decrease) in cash and Bank balances 215 252 than 3 months Opening balance of Cash/Bank Balances 130 189 Closing Balance of Cash/Bank Balances 345 442 Cash / (Debt) *Excludes Interest Accrued on debt C O C L N N N e a t u e e e h s s r t t t h e r e s C D D r : a B n T a e e n d C a a n k B t I n v e s o t a l D s h / ( b t / E q b t / E B D P s h E a l a n t m e e b t * e b u i t y I D T a q c n t ) A r t u e t ( i i s A c v u a n l l e n a u n r s t a l i s e d ) A s R o n s D . C 1 e r , c s 3 9 2 0 N N 2 4 5 6 7 8 1 5 2 2 6 3 A A A s o R n s . D C e r c 2 s 4 4 2 8 1 4 7 7 9 N N 0 2 4 2 9 9 A A A s o R n s . S C e p 2 r s 1 3 7 9 8 3 0 8 8 N N 1 0 2 4 0 6 A A Key Financial Ratios Q E 1 4 .8 % 3 F Y 2 1 6 8 .0 % 9 M F Y 2 1 B I D T A R M o C a E r g i n s Q 9 1 4 .3 % 3 F Y 2 5 6 .7 % M F Y 2 2 2 9 1 4 .9 % Q 3 F Y 2 2 8 .9 % M F Y 2 1 1 P B T R M o E a r g i n s 9 2 M 4 Q .8 F 1 4 .1 3 F Y % Y 2 2 % 2 2 RoEand RoCE computed for 9 months have been annualised