| Butterfly Gandhimathi Appliances Limited | ||||||
| Ratings reaffirmed at 'Crisil AA/Stable/Crisil A1+' | ||||||
| Rating Action | ||||||
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| Note: None of the Directors on Crisil Ratings Limited’s Board are members of rating committee and thus do not participate in discussion or assignment of any ratings. The Board of Directors also does not discuss any ratings at its meetings. | ||||||
| 1 crore = 10 million | ||||||
| Refer to Annexure for Details of Instruments & Bank Facilities |
Detailed Rationale Crisil Ratings has reaffirmed its ‘Crisil AA/Stable/Crisil A1+’ ratings on the bank facilities of Butterfly Gandhimathi Appliances Ltd (BGAL). Crisil Ratings has withdrawn its rating on the proposed bank loan facilities of Rs 141.85 crore at the client request. This is in line with Crisil Ratings' withdrawal policy.
The ratings continue to reflect the company’s established brand and diversified product profile, and its strong financial risk profile. The ratings also factor in the strong managerial and operational support from the parent, Crompton Greaves Consumer Electricals Ltd (CGCEL; rated ‘Crisil AA+/Stable’). These strengths are partially offset by exposure to intense competition in the cookware/kitchen appliances industry and susceptibility of operating profitability to volatility in raw material prices.
The company has achieved revenue of ~Rs 440 crores, and it remained moderate in the first half of fiscal 2025 due to weak demand and restructuring process. The revenue has declined by ~12% on-year in fiscal 2024 due to weak demand and reduction in corporate gifting (institutional sales), which constituted 10-14% in the past. Operating margin improved from ~7.3% in the first half of this fiscal to ~8.9% in the second quarter on the back of price hikes. The margin is expected to remain 8-9%, supported by revival in demand and festive season over the medium term. The margin had declined to ~3% in fiscal 2024 from ~9.3% previous fiscal due to high brand building investment, increased employee expense and extended producers’ responsibility (EPR) impact.
The financial risk profile remains strong, with healthy networth of ~Rs 300 crore and nil debt expected as on March 31, 2025. The debt protection metrics are likely to remain strong with interest coverage ratio of ~10 times in fiscal 2025 and expected to remain at a similar level over the medium term. The total outside liabilities to tangible networth (TOLTNW) ratio is expected to remain at ~0.7 time as on March 31, 2025. The liquidity is adequate, with cash and equivalent of Rs 78 crore as on March 31, 2024, and around Rs 50 crore as of September 2024. It is further supported by fund-based limit of Rs 145 crore with nil utilisation during the 12 months through November 2024. |
Analytical Approach Crisil Ratings has considered the standalone business and financial risk profiles of BGAL. Also, Crisil Ratings has applied its parent notch-up framework to factor in operational, financial and managerial support from CGCEL. |
Key Rating Drivers & Detailed Description Strengths:
Weaknesses:
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Liquidity: Strong Liquidity is supported by healthy cash accrual, low bank limit utilisation, and cash and equivalent of Rs 78 crore as on March 31, 2024, and around Rs 50 crore as of September 2025. This is supported by fund-based limit of Rs 145 crore with nil utilisation for the 12 months through November 2024. Cash accrual is expected to be Rs 50-70 crore per annum against nil debt obligation over the medium term. Regular capital expenditure (capex) will be moderate and will be funded through internal accrual. |
Outlook: Stable The company is expected to continue to benefit from the strong support of its parent, CGCEL, healthy market position in the domestic kitchen appliance industry, and healthy financial risk profile. |
Rating sensitivity factors Upward factors
Downward factors
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About the Company The company manufactures kitchen appliances under the brand Butterfly. It is listed on the National Stock Exchange and the Bombay Stock Exchange. The key product segments of BGAL include LPG stoves, mixer grinders, wet grinders, pressure cookers, chimneys and flasks among others. In addition to kitchen appliances, the company trades in home appliances such as air coolers, tower fans, electric irons. While the company has pan-India presence, it derives most of its revenues from South India.
The company was acquired by Crompton Greaves Consumer Electricals Limited (CGCEL) in March, 2022, with 55% shareholding. Subsequently, CGCEL’s increased its shareholding to 75%. |
Key Financial Indicators (standalone)
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Any other information: Not Applicable |
Note on complexity levels of the rated instrument: |
Annexure - Details of Instrument(s)
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| Annexure - Rating History for last 3 Years | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Annexure - Details of Bank Lenders & Facilities | ||||||||||||||||||||||||||||||||||||||||
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Criteria Details
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