The market had liked the performance of Crompton Greaves for Q4FY16 despite the loss. Before taking into account its loss from discontinued businesses, the company actually posted a 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.

For the quarter the company’s net sales rose 6% (YoY) at Rs.1670 crore. Costs as a percentage of total income rose from 84% to 95%. Operating profit was at Rs.82 crore, down 70%. There was an exchange loss of Rs.19 crore but this was more than compensated for through exceptional income of Rs.40 crore and tax write back of Rs.123 crore.

The company ended FY16 with a consolidated net sales at Rs.5272 crore, down 4% and net loss for the fiscal jumped up to Rs.395 crore from a net profit of Rs.23 crore in FY15. Total borrowing during FY16 came down 36% and is now at Rs.1200 crore.