CG Power & Industrial Solutions Ltd. – Q2 Results

Introduction

CG Power and Industrial Solutions Limited (or Crompton Greaves Limited) is an Indian MNC that designs, manufactures, and markets products pertaining to power generation, transmission, distribution, and rail transportation. It is now a part of the Murugappa Group after being acquired from the Avantha Group in 2020. The company was established in 1937 in the country and has since pioneered – and led – the management and application of electrical energy.

On October 20th, the company released its financial results for the second quarter of the fiscal year (Q2 FY 2023-24). The net profit announced by the company exceeded the analyst estimates, signalling a strong performance during the quarter under review.

Additional Read: Q2 Results Dashboard

Key Financial Metrics

Performance Highlights (Consolidated)

• As per the exchange filing, the company reported that its net profit (PAT) rose 35.4% YoY to ₹242.29 Cr.
• CG Power and Industrial Solutions’ revenue from operations increased by 19.5% YoY and stood at ₹2001.51 Cr.
• At the operating level, the Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) outperformed the estimates, with a growth of 23% YoY at ₹326 Cr.
• The company’s profit before tax (PBT) stood at ₹329.91 Cr compared to ₹263.10 Cr that was reported at the end of the last quarter (Q1 FY 2023-24).

The consolidated results also take the performance of the company’s operating subsidiaries in different countries into consideration, including Germany, Sweden, and the Netherlands, along with CG Adhesives Products Ltd. (India). It also includes other non-operating and holding subsidiaries, as per the filing.

On Friday, CG Power and Industrial Solutions Limited announced that the company made a net profit (PAT) of ₹242.29 Cr, a remarkable 35.4% growth YoY from ₹178.97 Cr it made during the corresponding period last year. This beat the analyst estimates, which were pegged at ₹212.05 Cr.

The company’s revenue from operations also surged 19.5% YoY at ₹2,001.51 Cr during the quarter under review against ₹1,674.56 Cr the company reported during the same period last year.

Additional Read: CG Power Share Price

Management Commentary

As per the filing, the company’s Board of Directors approved the expansion of the capacity of:

Major Announcements

• The Large Industrial Machines unit, located in Bhopal, would increase the LIM capacity from 1,002 units to 1,728 units per annum, with an investment of ₹35 Cr.
• Switchgears and Instrument Transformers at the company’s plant located in Nashik at ₹155 Cr.
• Power Transformers with an addition of 10,000 MVA capacity in Bhopal at  ₹31 Cr.

CG Power and Industrial Solutions Limited: H1 Consolidated Financial Figures (YoY)

Particulars	H1 FY 2022-23	H1 FY 2023-24
Total income	₹3,336.24 Cr	₹3,909.84 Cr
Revenue from operations	₹3,317.25 Cr	₹3,875.51 Cr
Total expenses	₹2,932.87 Cr	₹3,344.43 Cr
Profit before tax (PBT)	₹405.52 Cr	₹593.01 Cr
Profit after tax (PAT)	₹308.90 Cr	₹446.13 Cr
Total comprehensive income after tax	₹302.64 Cr	₹441.39 Cr

CG Power and Industrial Solutions Limited: Consolidated Financial Figures (QoQ)

Particulars	Q1 FY 2023-24	Q2 FY 2023-24
Total income	₹1,896.15 Cr	₹2,018.96 Cr
Revenue from operations	₹1,874 Cr	₹2,001.51 Cr
Total expenses	₹1,633.59 Cr	₹1,716.11 Cr
Profit before tax (PBT)	₹263.10 Cr	₹329.91 Cr
Profit after tax (PAT)	₹203.84 Cr	₹242.29 Cr
Total comprehensive income after tax	₹203.42 Cr	₹237.97 Cr

CG Power and Industrial Solutions Limited: H1 Standalone Financial Figures (YoY)

Particulars	H1 FY 2022-23	H1 FY 2023-24
Total income	₹3,176.66 Cr	₹3,708.31 Cr
Revenue from operations	₹3,146.64 Cr	₹3,666.15 Cr
Total expenses	₹2,775.30 Cr	₹3,159.54 Cr
Profit before tax (PBT)	₹403.51 Cr	₹691.26 Cr
Profit after tax (PAT)	₹302.38 Cr	₹547.30 Cr
Total comprehensive income after tax	₹301.30 Cr	₹544.56 Cr

CG Power and Industrial Solutions Limited: Standalone Financial Figures (QoQ)

Particulars	Q1 FY 2023-24	Q2 FY 2023-24
Total income	₹1,791.91 Cr	₹1,917.76 Cr
Revenue from operations	₹1,766.01 Cr	₹1,900.14 Cr
Total expenses	₹1,536.29 Cr	₹1,624.61 Cr
Profit before tax (PBT)	₹255.62 Cr	₹435.64 Cr
Profit after tax (PAT)	₹192.06 Cr	₹355.24 Cr
Total comprehensive income after tax	₹190.76 Cr	₹353.80 Cr

Consolidated Assets and Liabilities

Particulars	As of September 30, 2023
Total non-current assets	₹1,361.38 Cr
Total current assets	₹3,603.46 Cr
Total assets	₹5,038.02 Cr
Total equity	₹2,228.99 Cr
Total non-current liabilities	₹58.49 Cr
Total current liabilities	₹2,115.39 Cr
Total – Equity and liabilities	₹5,038.02 Cr

Stock Performance

On the day the company announced its financial results for Q2 FY 2023-24 on October 20th, the company’s shares opened at ₹383.40 and rose 3.69% to close at ₹394.35 apiece on the BSE.

About the Company

CG (Crompton Greaves) is an engineering conglomerate and boasts a wide range of products, solutions, and services relating to power and industrial equipment in its portfolio. The company also has a permanent footprint and manufacturing facilities in several countries across Europe, Asia, and North America. The company’s portfolio comprises transformers, circuit breakers, HT and LT motors, and Power Automatic Products, among others. For this reason, CG has structured its portfolio into three SBUs – Industrial, Power, and Railways.

Sources:

https://www.bseindia.com/xml-data/corpfiling/AttachLive/3636b0d2-a39a-4740-ab17-edc7a485a724.pdf

https://www.cgglobal.com/admin/uploads/Consolidated_Financial_Results_Q2_FY_2023-24.pdf

https://www.cgglobal.com/admin/uploads/Standalone_Financial_Results_Q2_FY_2023-24.pdf