Earnings Review
Power EBITDA helps CG Power net profit; industrial EBITDA dn
This story was originally published at 16:34 IST on 24 July 2025
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--CG Power Apr-Jun consol net profit INR 2.69 bln vs INR 2.41 bln year ago
--CG Power Apr-Jun consol revenue INR 28.78 bln vs INR 22.28 bln year ago
--CG Power Q1 consol total expenses INR 25.43 bln vs INR 19.25 bln year ago
--CG Power Q1 consol industrial systems revenue INR 16.92 bln vs INR 14.72 bln
--CG Power Q1 consol power systems revenue INR 10.70 bln vs INR 7.50 bln
--CG Power Apr-Jun consol EBITDA INR 4.09 bln, up 14% on year
--CG Power Apr-Jun consol EBITDA margin 14.2% vs 16.2% year ago
--CG Power Apr-Jun consol order intake INR 51.38 bln, up 62% on year
--CG Power consol unexecuted order backlog INR 130.72 bln as on Jun 30
--CG Power Apr-Jun industrial systems EBITDA INR 1.82 bln, down 5% on year
--CG Power Apr-Jun industrial systems EBITDA margin 11.6% vs 14.1% yr ago
--CG Power Apr-Jun power systems ops EBITDA INR 2.35 bln, up 49% on year
--CG Power Apr-Jun power systems EBITDA margin 22.0% vs 21.1% yr ago
--CG Power Apr-Jun power systems margins up on better price realisation
By Rajesh Gajra
NEW DELHI – The bottom-line performance of the electrical and industrial equipment manufacturer CG Power and Industrial Solutions Ltd. in the June quarter was largely on the back of strong revenue and operating profit growth in its power segment. A fall in operating profit in the industrial systems segment, however, proved to be a drag on the net profit growth of the company.
The Murugappa group company's consolidated net profit increased 12% on year to INR 2.69 billion on the back of a 29% jump up in its revenue from operations to INR 28.78 billion. The company's power segment's revenue was up substantially by 43% on year to INR 10.70 billion on the back of higher price realisation, according to the company. The segment's earnings before interest, tax, depreciation and amortisation jumped by 49% on year to INR 2.35 billion. In the industrial systems segment, the revenue increased 15% on year to INR 16.92 billion and the EBITDA fell 5% to INR 1.82 billion.
The power segment EBITDA margin expanded to 22% in the June quarter from 21.1% in the year-ago quarter while the industrial systems EBITDA margin contracted sharply to 11.6% from 14.1%. The total consolidated EBITDA of CG Power increased 14% on year to INR 4.09 billion in the June quarter and the EBITDA margin, dragged down by the industrial systems segment, contracted to 14.2% from 16.2%.
The 29% on-year jump up in consolidated revenue from operations was the highest in 12 quarters but the 12% on-year increase in net profit was lower than the previous quarter's 16% rise. In the June quarter, CG Power got consolidated order inflow of INR 51.38 billion, up 62% on year. At the end of the quarter, the consolidated unexecuted order book was INR 130.72 billion.
The company said in the earnings press release the consolidated margin in the June quarter was hit on account of investment in its subsidiary CG Semi Pvt. Ltd. and lower absorption of fixed costs its drives, and automation business in Europe amid sales decline. The consolidated expenses in the June quarter was INR 25.43 billion, up 32% on year, the highest on-year change in 12 quarters.
CG Power's cost of raw materials consumed, 76% of total expenses, jumped 24% on year to INR 19.24 billion. The next largest expenses item--other expenses--rose 21% on year to INR 2.74 billion. There was a substantial rise in employee benefit expenses to INR 2.15 billion, up 53% on year, the highest on-year change in 24 quarters.
On a standalone basis, the revenue of CG Power was INR 26.43 billion, up 25% on year, which was lower than the 29% rise in the consolidated revenue, to INR 28.78 billion. The company said the consolidated accounts for the quarter includes for the first time the operational performance of Axiro Semiconductor Group which houses the radio frequency components business acquired by CG Power from Renesas Electronics and other affiliate entities. The company, however, did not disclose separately the revenue and operating profit numbers of Axiro Semiconductor.
Thursday, shares of CG Power closed 0.3% lower at INR 680.35 on the National Stock Exchange. The company announced its June quarter earnings during market hours, and the share price moved up around 3% post announcement. End
Edited by Akul Nishant Akhoury
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