Crompton Repays Final ₹300 Crore NCD Tranche, Turns Debt-Free

Crompton Greaves Consumer Electricals Limited (NSE: CROMPTON) announced the successful repayment of the final tranche of its Non-Convertible Debentures (NCDs), amounting to ₹300 crore.

This marks the full repayment of the ₹2,125 crore debt raised for acquiring a 75% stake in Butterfly Gandhimathi Appliances Ltd (‘Butterfly’).

Strengthening Financial Position

The repayment, achieved across five scheduled tranches, underscores Crompton’s focus on reducing leverage and optimising interest costs. The company’s debt-free status post this repayment allows for greater financial flexibility, paving the way for reinvestment in strategic growth areas, operational innovation, and improved shareholder value.

Kaleeswaran Arunachalam, Chief Financial Officer and Head of Strategy, commented, “With the repayment of this final tranche of NCDs of Rs. 323 (Principal + Interest), we are pleased to announce that we have transitioned to a zero-debt position. This significant milestone is a testament to the resilience and effectiveness of our business model and operational strategies, which have generated consistently strong cash flows year after year.”

He further stated, “As we move forward, we will continue to drive sharp capital allocation decisions, ensuring that we invest responsibly in initiatives that foster sustainable growth. Our robust cash flow generation has allowed us to repay the full debt in a short time frame. Our commitment to maintaining a strong balance sheet positions us well for future opportunities and solidifies our commitment to delivering long-term value for all our stakeholders.”

“This achievement underscores the Company’s dedication to financial discipline and efficient management, reinforcing its ability to navigate challenges while paving the way for future growth and profitability,” said, Chief Financial Officer and Head of Strategy.

Also Read: Crompton Greaves Bags ₹101 Crore Order for Solar Pumping Systems from MEDA!

Conclusion

By eliminating its acquisition-related debt, Crompton Greaves enhances its balance sheet strength and positions itself to drive growth and innovation in the consumer appliances sector.

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