CG Power and Industrial Solutions is a big loser today. The stock price went on to hit a new 52-week low at Rs.67.60 and remains at the same levels.
The company posted a loss for Q4FY18 mainly on account of the exceptional expense otherwise the operational performance was good.
The company’s consolidated net loss rose 31% (YoY) to Rs.582 crore and of this, the provision for exceptional item was Rs.415 crore, which included litigation claims, a set of write offs in relation to inventories and other receivables. The company has stated that recoveries are uncertain.
CG Power’s consolidated revenue rose 18% to Rs.1792 crore. Operating profit was at Rs.142 crore, up 33% and margins actually moved up from 7% to 8%.
Our Editor, Mr.SP Tulsian has given a ‘hold’ call post the Q4 numbers. He said, “CG Power results are seen quite good. Only issue seen is delay in turning a cash surplus balance sheet, which should happen in this FY. Domestic operations are showing margin expansions.”