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Below is quote on Crompton Consumer Q1FY22 results by Mr. Jyoti Roy - DVP- Equity Strategist, Angel Broking Ltd   

Crompton Consumer reported a 45.9% yoy growth in revenues to Rs. 1050cr though revenues were down 31.0% QoQ due to lockdowns during the quarter. Gross profits for the quarter increased by 45.0% yoy to Rs. 339.8 crore while gross margins contracted by 19bps yoy to 32.35% though it improved by 150bps qoq. Operating profit for the quarter was up by 23.6% yoy due while margins contracted by 215bps yoy due to sharp increase in other expenses. Net profit was up by 26.7% yoy to ₹94.8 crore. Overall the Q1FY22 numbers were impacted due to the lockdowns imposed by various states though gross margins expansion was a key positive as the company had taken price hikes in the prior quarters. While the Q1FY22 numbers were impacted by the second Covid wave we expect growth to redound in Q2FY22 due to pent up demand and reopening of the economy. We have a positive outlook on the consumer durable sector including Crompton Consumer. 

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