CG Power

Crompton Greaves consolidated net profit for the quarter jumped up over 4 times to Rs.274 crore and this was mainly driven by its land sale in Mumbai. The company has earned Rs.278 crore via sale of its Kanjurmarg land sale in Mumbai, shown as exceptional income. If this land sale gain is removed, the company’s adjusted net profit would be only Rs.7 crore.

Net sales of the company was down 1.5% (YoY) at Rs.1828 crore. The overall performance of the company was affected due to poor show put up by the power system segment which showed a 11% decline in revenue and EBIT fell 41%. Consumer Products did better with a 11% rise in topline and EBIT rose 12%. Overall, it was a poor show for Q3 and it was the land sale which saved the day. This company’s fortunes are directly inked with that of the power sector and till that does not show a bounce back, the company will continue to face pain.