Consolidated revenue increased 7% YoY led by 31% growth in the Consumer Products (CP) segment to Rs 1035 crore. EPC (Engineering, Procurement and construction) segment revenues was down 37% YoY to Rs 268 crore.
Consumer Products segment revenue growth was led by appliances, Morphy Richards, lighting and fans segments revenue growth by 41%, 35%, 20% and 13%, respectively, supported by price hikes in the range of 10-11%.
The company has reported market share gains in fans, appliances and lightings
Strong sales growth in the CP, helped drive PAT up 18% YoY to Rs 63 crore
Demand over the next two quarters may gradually taper off on a high base and sharp price rise.
The company is looking to focus on urban regions to increase the revenue share
Company plans further price hikes Q3FY22 to protect gross margin
The company has reiterated 1% increase in Consumer products segment.
EBIT margin every year supported by various cost optimization measures.
The project business will see minimal losses in H2FY22 and the segment will report profit from FY23 onwards.
Vendor financing helped release Rs 300 crore in Q2FY22. This along with improved cash flow from operations helped reduce gross debt by Rs 452 crore in Q2FY22 to Rs 281 crore.
EPC segment has delivered an EBIT loss but continues to focus on project execution and remains cash flow positive.