Indian home appliance maker Crompton Greaves Consumer Electricals on Wednesday reported a nearly 18% drop in profit for the September quarter, missing analysts’ estimates, marred by higher expenses and muted performance in its consumer durables division. The company’s profit for the three months ended September 30 fell to 1.31 billion Indian rupees ($15.96 million) from 1.59 billion rupees a year earlier.
Analysts on average had expected a profit of 1.4 billion rupees, according to IBES data from Refinitiv. As well as LED lighting and fans, Crompton Greaves also sells pumps, water heaters and kitchen appliances. Total costs rose 31.6% in the second quarter. The company’s operating revenue rose 22.7% to 17 billion rupees. Power consumption, the company’s largest segment, saw revenue fall 3.1% to 10.62 billion rupees. Rival Havells India Ltd reported a drop in profits last week, pointing to Russia’s invasion of Ukraine pushing up commodity prices, putting pressure on the electrical goods industry.
