CG Power and Industrial Solutions Ltd has announced its standalone profit after tax (PAT) for the January-March 2024 quarter, standing at Rs 240.59 crore. This figure reflects a marginal increase from the Rs 240.23 crore reported for the same period last year. The company revealed these financial results in a statement issued on May 6.
In the preceding third quarter, the standalone PAT was reported at Rs 216.47 crore. For the entire fiscal year ending March 31, 2024, the standalone PAT recorded a significant growth of 28 percent, reaching Rs 1,004 crore compared to Rs 785 crore in the previous fiscal year.
During the fourth quarter, the standalone total income also experienced a notable increase, rising to Rs 2,139.31 crore from Rs 1,802.32 crore in the corresponding period last year. Similarly, for the full fiscal year, standalone total income surged to Rs 7,760.80 crore compared to Rs 6,658.95 crore registered in the preceding fiscal year.
In March 2024, the company declared and paid an interim dividend of Rs 199 crores (Rs 1.30 per share). The quarter saw aggregate sales climb to Rs 2,084 crores, marking a growth of 17 percent year-on-year (YoY). Margins also witnessed an improvement YoY, standing at 15.2 percent of sales compared to 14.1 percent in the previous year, attributed to higher realizations, a favorable product mix, and cost efficiencies in Power systems, as per the company’s statement.
Furthermore, the quarter generated a free cash flow of Rs 178 crores. As of March 31, 2024, the unexecuted Order Book was 45 percent higher YoY at Rs 6,276 crores compared to Rs 4,319 crores as of March 31, 2023.
In a significant development, the Union Cabinet approved the company’s proposal under India’s Semiconductor scheme to establish an Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, Gujarat. The estimated investment over five years for this project is Rs 7,600 crore, expected to be funded by government subsidies, equity contribution, and potential bank borrowings as required. Renesas Electronics Corporation, Japan, and Stars Microelectronics, Thailand are the Technology and Joint Venture partners for this endeavor.
Additionally, CG Power and Industrial Solutions incorporated a subsidiary named CG Semi Private Limited (‘CG SEMI’) on March 08, 2024, to establish an Outsourced Semiconductor Assembly and Test (‘OSAT’) facility.