💰 Financial Performance

Revenue Growth by Segment

Total revenue from operations decreased by 7.17% YoY to INR 864.50 Cr in FY25 from INR 931.28 Cr in FY24. While the first half of FY25 saw a decline, the second half achieved a 5% revenue growth following strategic pricing and marketing interventions.

Geographic Revenue Split

The company has a heavy geographic concentration in South India, where it is a top three player. It maintains a distribution network of 29,000+ retailers and 750+ distributors in the region.

Profitability Margins

Operating profit margin improved significantly to 7.55% in FY25 from 2.94% in FY24. Net profit margin increased to 3.76% from 0.79% YoY, driven by margin improvements and strict control on spends.

EBITDA Margin

EBITDA margin stood at 7.55% (INR 65.25 Cr) in FY25, a substantial increase from 2.71% (INR 25.26 Cr) in FY24, reflecting improved equity utilization and stronger profitability.

Capital Expenditure

Capital expenditure is described as moderate and is expected to be funded through internal cash accruals of INR 50-70 Cr per annum over the medium term.

Credit Rating & Borrowing

The company maintains a strong financial risk profile with an interest coverage ratio of 12.58x in FY25, up from 4.26x in FY24. Debt is minimal with a debt-equity ratio of 0.04x.

⚙️ Operational Drivers

Raw Materials

Specific raw materials like steel, aluminum, and plastics are used for kitchen appliances; however, their specific percentage of total cost is not disclosed in available documents.

Capacity Expansion

Current capacity is not specified in units, but the company plans moderate expansion funded by internal accruals of INR 50-70 Cr annually.

Raw Material Costs

Raw material costs are a significant driver, with operating profitability susceptible to price volatility. In FY25, COGS reduction was in line with sales, helping to improve margins to 7.55%.

Manufacturing Efficiency

Manufacturing efficiency is managed through cost optimization and product laddering; specific capacity utilization percentages are not disclosed.

Logistics & Distribution

Distribution is handled through 29,000+ retailers and 750+ distributors, with a significant focus on e-commerce and online channels.

📈 Strategic Growth

Expected Growth Rate

12%

Growth Strategy

Growth will be achieved through premiumization (introducing high-end product variants), increasing digital penetration, and a proposed merger with CGCEL to realize synergies, simplify governance, and align shareholder interests.

Products & Services

LPG stoves, mixer grinders, wet grinders, pressure cookers, and vacuum flasks.

Brand Portfolio

Butterfly

New Products/Services

Introduction of premium product variants and high-potential offerings to enhance brand equity; specific revenue contribution % not disclosed.

Market Expansion

Focus on expanding digital penetration and strengthening the existing retail network of 29,000+ outlets in South India.

Market Share & Ranking

Top 3 player in mixer grinders, pressure cookers, and LPG stoves in South India.

Strategic Alliances

Proposed merger with parent company Crompton Greaves Consumer Electricals Limited (CGCEL).

🌍 External Factors

Industry Trends

The kitchen appliance industry is evolving toward premiumization and digital sales. BGAL is positioning itself by focusing on high-margin premium variants and e-commerce growth.

Competitive Landscape

Intense competition from both organized and unorganized players in the cookware and kitchen appliance segments.

Competitive Moat

The moat consists of a 20-year brand legacy and a dominant distribution network in South India. This is sustainable due to the strong managerial and operational support from parent CGCEL.

Macro Economic Sensitivity

The company is sensitive to inflation and sluggish market demand, which contributed to a 7.17% revenue decline in FY25.

Consumer Behavior

Shift toward premium products and increased adoption of online shopping for kitchen appliances.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to safety standards (HIRA), environmental regulations (EPR), and accounting standards for financial reporting.

Environmental Compliance

The company is committed to eco-friendly packaging and waste minimization. FY24 margins were impacted by Extended Producers’ Responsibility (EPR) costs.

Taxation Policy Impact

The company manages provisions and contingencies for uncertain tax positions; specific tax rate % not disclosed.

Legal Contingencies

The company faced a penalty of AED 25,000 related to a product injury, which was deemed to have no material impact on financials.

⚠️ Risk Analysis

Key Uncertainties

Key risks include raw material price volatility (impacting margins) and the successful realization of synergies from the CGCEL merger.

Geographic Concentration Risk

High revenue concentration in South India, though the company is expanding digital access to other regions.

Third Party Dependencies

Significant dependency on parent CGCEL for managerial resources, including the CFO, CBO, and R&D functions.

Technology Obsolescence Risk

The company uses an ERP system for real-time monitoring to mitigate operational risks and stay competitive in a digital-first market.

Credit & Counterparty Risk

Credit profile is linked to the credit risk profile of the parent, CGCEL.