Butterfly Gandhimathi Appliances Ltd, South-India’s leading kitchen and small domestic appliances player, reported a 42 per cent decline in net profit to ₹15 crore as against a net profit of ₹25 crore for the same period last year.
Revenue was down by 16 per cent to ₹308 crore (₹368 crore) due to the festive period shift and one-off corporate sales in Q2 FY23, says a company release.
Rangarajan Sriram, Managing Director, Butterfly Gandhimathi Appliances Ltd, commenting on the results said, “We continue to focus on balancing and growing our core channels. The sales phasing of online channel has been reorganised across platforms and categories. Despite an industry-wide slowdown, the company’s retail channel continued to grow. The company registered growth in the Kerala region, boosted by Onam festivities. EBITDA margin stood at 8.2 per cent for the quarter, post investments in marketing and people.
Shift in festive season
“With the shift in the festive season this year, we anticipate uptick in demand in Q3. Premium segments continue to grow across categories as we invest in brand awareness and introducing new products across markets and channels to drive higher sales,” he said.
The company, which has four core products – mixer grinders, pressure cookers, gas stove and wet grinders - said that during the second quarter retail and modern trade channel continued to grow amidst industry slowdown. Shift in festive season to later part of third quarter as compared to last year has resulted in season pre-buying moving to the third quarter.
A pilot project of ‘Power of One’ is underway to leverage Crompton’s distribution network to expand beyond existing Butterfly’s strong hold in South India, the company said in a release.
Update on merger
The scheme for merger of Butterfly Gandhimati Appliances Ltd. with it’s promoter, Crompton Greaves Consumer Electricals Ltd., was announced on March 25, 2023. The scheme has received the NOC from BSE and NSE on July 21, 2023 and July 24, 2023 respectively. Currently the NCLT approval process is underway and a meeting of the shareholders and creditors of the company is convened on October 28, 2023.
The company’s share price on the NSE closed at ₹1,200, down by 1.10 per cent.