Mumbai-based Crompton Greaves Consumer Electricals expects growth revival for its subsidiary, Butterfly Gandhimathi Appliances, in the second half of the current financial year.

Butterfly posted a 19% year-on-year revenue decline in the April-June 2024 quarter (Q1FY25) at ₹178 crore due to the ongoing channel restructuring. Its margin was at 2.2% versus 7.3% last year.

Kaleeswaran Arunachalam, CFO of Crompton, said “Post, H1 (first half of FY25), we should be able to complete the entire pricing and channel action that we have to complete in Butterfly. As we enter H2 (second half of FY25), we should start seeing the business get back on the track of growth, start delivering about 7% to 8% earnings before interest, taxes, depreciation, and amortisation (EBITDA), and then improve from there onwards.”

Overall, Crompton reported a revenue of ₹2,137 crore in Q1FY25, up 14% from last year. Margins were about 100 basis points higher than last year at 10.9%  and profit after tax rose by 25% to ₹152 crore.

Arunachalam attributed the healthy performance to a positive impact from the summer season and the launch of Crompton 2.0, a strategy focused on growth and absolute profits.

“We expect this year to deliver strong double-digit growth and better EBITDA (earnings before interest, tax, depreciation, and amortisation) growth than sales growth,” said Arunachalam.

Crompton continues to dominate the global market for fans, selling approximately two crore units last year. The company sees significant opportunities for growth in both product and channel expansions.

The focus on premium fans, driven by new product launches over the past quarters, is helping the company penetrate the market and increase market share in the premium category.

“As far as the mass premium business is concerned or the mass business of fans category is concerned, we do see channel opportunities here. As much as we have very high market share in some parts of the country, we do see there is still penetration opportunity available in other areas. Now, this being on one side, we also see premiumisation playing a big role that will help us to drive fans value growth significantly better than the volume growth,” he said.

The company, which has a market capitalisation of ₹29,464.57 crore, has seen its shares rise 55% over the last year.

Also Read | Crompton shares hit fresh 52-week high: CFO details growth strategy for the year