More Stories

Informist, Monday, Oct. 21, 2024

--CG Power Jul-Sept consol net profit INR 2.21 bln vs INR 2.42 bln year ago 

--CG Power Jul-Sept consol revenue INR 24.13 bln vs INR 20.02 bln year ago 

--CG Power: Board OKs raising up to INR 35 bln via QIP 

--CG Power Apr-Sept consol net profit INR 4.62 bln vs INR 4.46 bln year ago 

--CG Power Apr-Sept consol revenue INR 46.40 bln vs INR 38.76 bln year ago 

--CG Power: Board OKs additional invest INR 266.4 mln for capacity expansion 

--CG Power Jul-Sept power systems ops sales INR 8.46 bln vs INR 6.19 bln 

--CG Power Jul-Sept industrial system ops sales INR 15.6 bln vs INR 13.8 bln 

--CG Power shares turn negative, now down 2.6% vs up 2.3% earlier 

--CG Power shares turn negative, Jul-Sept consol PAT falls on year 

By Aman Aryan

MUMBAI – Electrical engineering company CG Power and Industrial Solutions Ltd.'s consolidated net profit for the September quarter fell despite the company reporting the highest revenue growth in the last six quarters, owing to higher cost of materials. The company's net profit for the quarter was INR 2.21 billion, down 9% from INR 2.42 billion in the year-ago quarter.

CG Power reported consolidated revenues of INR 24.13 billion, up from INR 20.02 billion in the year-ago quarter. The company's consolidated revenue rose 21% in the latest quarter, the highest in the last six quarters and second only to the 28% growth reported in the March quarter of 2022-23 (Apr-Mar). Sequentially, the revenue was up 8%, but the net profit fell 8%.

The growth in revenue was offset by higher cost of materials and an increase in other expenses. The company's cost of materials rose to INR 16.40 billion during the quarter, up 25.5% from INR 13.06 billion a year ago, the highest growth in the last nine quarters. The company's other expenses were INR 2.73 billion, up 34% on year. Overall, CG Power's total expenses were at INR 21.48 billion, up 25% on year.

The company's earnings before interest, tax, depreciation, and amortisation for the September quarter was almost flat on year and down 10% sequentially at INR 3.24 billion. The EBITDA margin fell 290 basis points on year to 13.4% in the latest quarter.

Among segments, the company's revenue from its power systems segment rose 36.5% on year to INR 8.46 billion. Although the revenue from its industrial systems segment rose 13.2% to INR 15.61 billion, the segment's profit before tax and finance cost fell 21% to INR 1.75 billion. The company said it generated free cash flow of INR 2.23 billion in the latest quarter. 

While the company's order inflows rose 42% on year to INR 33.02 billion in the September quarter, its order backlog was up 48% on year at INR 79.65 billion as of Sept. 30. The company said the annualised return on capital employed stood at 32% in the latest quarter.  

The company approved additional investment of INR 266.4 million to expand the capacity of its power transformer units to 40,000 megavolt-amperes from 35,000 megavolt-amperes. The company said this expansion project, coupled with the earlier expansion, is expected to be implemented in 18 months and will be funded through internal accruals. The proposed expansion is to meet the expected increase in demand for transformers. CG Power said its board had approved raising up to INR 35 billion through a qualified institutional placement.  

The company said in Jul-Sept, it acquired 145,622 equity shares of G.G. Tronics India Pvt. Ltd. which has now become a subsidiary. CG Power said it acquired the stake for INR 1.73 billion and added it had also subscribed to compulsorily convertible preference shares worth INR 1.46 billion issued by G.G. Tronics. CG Power said it currently holds 55% stake in G.G. Tronics, which operates in the field of design, manufacture, supply and installation of electronic safety embedded signalling systems for the railway transportation sector. G.G. Tronics has received an order of INR 40 million to develop locomotive train collision avoidance system, also known as 'Kavach', CG Power said, and added that this order would be completed in 9–10 months.

While CG Power's net profit for Apr-Sept was INR 4.62 billion, up 3.6% from INR 4.46 billion in the year-ago period, revenue for this period was INR 46.40 billion, up 19.7% from INR 38.76 billion a year ago. On Monday, shares of the company closed at INR 775.60 on the National Stock Exchange, down 5.3%.  End

Edited by Avishek Dutta

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (22) 6985-4000 

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2024. All rights reserved.