Crompton Greaves hits new low

Crompton Greaves, the top loser on the bourses currently, hit a new 52-week low at Rs.199.55 and it continues to remain firmly in the red, down some 22%.

This reaction has come in after the company posted a set of dismal Q3FY16 numbers. The company for the quarter posted a consolidated loss of Rs.107 crore v/s net profit of Rs.274 crore in previous Q3. Total income slipped from Rs.2436 crore to Rs.2087 crore.

Another reason for the fall is the change in guard - its chief executive officer and managing director Laurent Demortier stepped down unexpectedly.

The company has explained, “ The group has made an assessment of fair value of the advances given to CG International BV taking into account past business performances prevailing business conditions and indicative enterprises value of the European, North American and Indonesian entities of the power segment. Considering the above and as a matter of prudence the group has made provision for advances given to its arm, including loss on sale of Canadian operation of Rs.410 crore for the December quarter. As per the company’s policy the investments and advances will be subjected to an impairment test as at year end.