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Home appliances maker Crompton Greaves Consumer Electricals beat first-quarter profit estimates on Wednesday, helped by higher demand for fans and air coolers amid extreme heat conditions in the country.

The company reported consolidated net profit of 1.52 billion rupees ($18.2 million) for the quarter ended June 30, up 28% from a year ago. Analysts were expecting a profit of 1.47 billion rupees as per LSEG.

Revenue from operations jumped 14% to 21.38 billion rupees, while cost of materials consumed fell to 4.68 billion rupees.

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KEY CONTEXT

While India's summer season typically stretches from March to May, many parts of the country recorded temperatures in excess of 40 degrees Celsius, along with increasingly warmer nights in June, boosting sales of appliances like fans and air coolers.

Analysts noted that the country's consumer durables sector witnessed strong demand despite charging higher prices.

Whirlpool of India also beat first-quarter profit estimates, helped by strong demand for its air conditioners and refrigerators, while Havells India missed profit estimates, as higher expenses offset improved demand.

PEER COMPARISON

Valuation (next Estimates (next 12 Analysts' sentiment

12 months) months)

RIC PE EV/EBI Revenue Profit Mean # of Stock to price Div yield

TDA growth (%) growth (%) rating* analysts target** (%)

Crompton Greaves 45.55 30.31 12.21 30.83 Buy 31 1.06 0.69

Consumer Electricals

Havells India 64.13 44.25 20.17 26.83 Buy 21 0.96 0.49

Voltas 58.75 44.89 16.46 102.36 Hold 34 1.12 0.36

Polycab India 46.76 32.65 17.98 19.08 Buy 24 0.97 0.46

* The mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell

** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT

APRIL-JUNE STOCK PERFORMANCE

-- All data from LSEG

-- $1 = 83.7040 Indian rupees