Crompton Greaves Consumer Electricals (CGCEL) posted 4QFY20 revenue of Rs10.2bn, down 16% YoY, 8%/10% below our/consensus estimates. CGCEL lost primary sales of Rs3bn in March owing to COVID-19 lockdown; adjusting the same it would have posted 9% YoY growth in 4QFY20. CGCEL’s overall B2C volume/value growth in Jan-Feb months was 33%/14 YoY, respectively. Electric Consumer Durables (ECD) sales fell 14% YoY to Rs7.4bn (73% of total sales), but growth in Jan-Feb months was strong, driven by fans, domestic pumps and appliances. Lighting revenue fell 19% YoY to Rs2.8bn (27% of total sales) due to lower LED prices YoY and slowdown in B2B/B2G orders (50% of segment sales). Gross margin rose 60bps YoY to 31.6% due to improved sales mix and benefits from cost optimization program. EBITDA fell 18% YoY to Rs1.4bn. However, operating margin remained healthy at 13.6%, down 40bps YoY, above our/consensus estimates of 12.6%/12.8%. EBIT margin for ECD segment was up 50bps YoY at 20%, while Lighting segment EBIT margin was down 450bps YoY at 7%, but flat QoQ. PAT fell 30% YoY to Rs1bn (partly impacted by higher tax rate at 25.5% v/s 15.7% YoY), in line with our/consensus estimates. While COVID-19 lockdown will impact growth in FY21E, CGCEL has identified cost savings worth Rs1bn to cushion margins. The manufacturing plants are running at 20%-25% capacity in one shift due to (1) strict social distancing practice, (2) adequate inventory of one month with the company and (3) lower demand. CGCEL’s 22 warehouses out of 23 are operating currently, while 40%-50% of retail touch points have resumed work with 60%-70% capacity. Demand from Orange and Green zones is back to 60%-70% level, while it is 20%-25% for Red zone. We have revised our estimates factoring in the COVID-19 lockdown. We maintain Buy rating on the stock with a revised target price of Rs265 (Rs285 earlier) based on 38x FY22E earnings.