CG Power and Industrial Solutions announced a nearly 10% decline in its consolidated profit after tax, reporting ₹220 crore for the quarter ending September 2024, down from ₹244 crore in the same period last year.
The company’s net profit fell by 8.8% year-on-year to ₹221 crore, while Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) decreased by 4.6% to ₹294.7 crore compared to the previous year.
The EBITDA margin also declined by 320 basis points, dropping to 12.2% from 15.4% in the corresponding quarter last year. However, revenue for the quarter rose by 20.5%, reaching ₹2,412.7 crore, up from ₹2,001.5 crore in the same quarter of the previous year.
In addition, the board has approved raising ₹3,500 crore through a Qualified Institutional Placement (QIP), pending approval from shareholders and other regulatory bodies. CG Power plans to increase the manufacturing capacity of its Power Transformer Units at the Mandideep Plant in Bhopal from 35,000 MVA to 40,000 MVA at its T3 unit. This capacity expansion was initially approved last October, when the capacity was raised from 25,000 MVA to 35,000 MVA.
The total investment for this expansion will be ₹26.64 crore, funded through internal resources, with an anticipated completion timeline of 18 months. CG Power stated that this expansion is in response to the expected rise in transformer demand.
The company’s aggregate sales for the quarter rose 21% to ₹2,413 crore, compared to ₹2,002 crore during the same quarter of the previous fiscal year, according to a filing with the stock exchange. Order intake for the second quarter increased by 42% to ₹3,302 crore, with an unexecuted order backlog of ₹7,965 crore, reflecting a 48% year-on-year growth as of September 30, 2024.
The consolidated results encompass the performance of subsidiaries operating in Sweden, Germany, and the Netherlands (Drives and Automation Europe), as well as CG Adhesives Products (India), CG Semi (India), GG Tronics India, and other non-operating and holding subsidiaries.
On a standalone basis, the company’s profit fell to ₹223 crore, down from ₹355 crore in the July-September quarter of FY24, while aggregate sales for this period reached ₹2,270 crore, representing a 19% annual growth.
