Crompton Greaves hits a new high

Crompton Greaves is currently the top gainer on the BSE. The stock breached the upper circuit at Rs.66 and went on to hit a new 52-week high at Rs.68.70. Volumes have jumped up some 2.5 times.

The company declared its Q4 and Fy16 numbers late in the evening on Friday. Before taking into account its loss from discontinued businesses, the company actually posted a consolidated net profit of Rs.122 crore, down 45% (YoY) but up sequentially from a loss of Rs.117 crore. The market is enthused despite the loss as the loss has come in much lower, both QoQ as well as YoY.

Then the account of discontinued business loss after tax came in at Rs.224 crore and this led to the company ending the fiscal with a net loss of Rs.102 crore v/s loss of Rs.324 crore in Q3 and loss of Rs.192 crore in Q4FY15. This ‘discontinued business’ includes sale of its transmission and distribution business in Indonesia, Hungary, Ireland, France, North America and Belgium, sale of its power systems business in Canada, close down of its systems business in Brazil and is also in the process of closing it down in North America and UK.