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Shares of Lighting and consumer electrical products major Crompton Greaves Consumer Electricals declined on Thursday after it reported an 18 percent drop in its September quarter net profit.

Consolidated revenue increased 23 percent from last year to Rs 1,700 crore. The operating performance of the company was weak as EBITDA declined by one-tenth, while margin contracted by nearly 400 basis points.

The management attributed the quarterly weakness to a high base from last year due to post-Covid pre-buying.

Earlier this year, Crompton announced the acquisition of Butterfly Gandhimathi Appliances. It had acquired a 55 percent stake from the promoter group of the company and launched the mandatory open offer to acquire another 26 percent stake. The total consideration for the acquisition came up to Rs 2,076.6 crore.

Butterfly's offline business for the period under review grew in double digits, aiding gross margin improvement.

MD & CEO Shantanu Khosla said that the company will aim at restoring margin normalcy through cost savings, premiumisation, and appropriate price actions.

Shares of Crompton Consumer ended 2.9 percent lower at Rs 367.20.

(Edited by : Rukmani Krishna)