During Wednesday’s trading session, the shares of a leader in the Electrical Engineering Industry and an engineering conglomerate surged nearly 8.5 percent to Rs. 623.95 on BSE, after the company reported financial results for Q3 FY25 and Greenfield Expansion up worth Rs. 712 crores.
With a market cap of Rs. 93,376.5 crores, at 12:20 p.m., the shares of CG Power and Industrial Solutions Limited were trading in the green at Rs. 610.8, up by around 6.3 percent, as compared to its previous closing price of Rs. 574.85.
What’s the news
The fluctuations in the share prices were observed after CG Power a Industrial Solutions Limited announced the financial results for Q3 FY2 through the recent filings with the stock exchange
For Q3 FY25, CG Power reported consolidated total revenue from operations of Rs. 2,515.7 crores, registering an increase of around 4.3 percent QoQ from Rs. 2,412.7 crores in Q2 FY25, as well as a rise of about 27 percent YoY from Rs. 1,978.8 crores in Q3 FY24.
The company’s net profit for Q3 FY25 grew to Rs. 237.8 crore representing a significant rise of around 8.3 percent QoQ from Rs. 219 crores in Q2 FY25, but a year-on-year decrease of nearly 68.2 percent from Rs. 747.7 crores in Q3 FY24.
In Q3 FY25, the company reported an increase in EBITDA to Rs. 365 crores, reflecting a strong 26 percent YoY growth compared to Rs. 2 crores in Q3 FY24. However, the EBITDA margin slightly declined to 14.5 percent, down from 14.6 percent in the same period last year.
For the quarter, free cash flow generated amounted to Rs. 216 crores, a the annualized Return on Capital Employed (ROCE) stood at 34 percent.
The consolidated order intake for Q3 FY25 reached Rs. 4,390 crores, marking an impressive 82 percent YoY growth. Additionally, the unexecuted order backlog stood at Rs. 9,706 crores, a 70 percent increase compared to the same date last year.
Also read…..
Key events in Q3 FY25
Greenfield expansion: The company’s Board has approved a Greenf expansion for 45,000 MVA of Power Transformers capacity, with an estimated investment of Rs. 712 crores. This expansion will increase the total capacity to 85,000 MVA by FY28, driven by the expected growth in the domestic market and the aim to cater to the export market.
Order Received: G.G. Tronics India Pvt Ltd., a subsidiary of CG Power, secured a significant order for the Locomotive Train Collision Avoidan System (TCAS), also known as “KAVACH,” valued between Rs. 500-600 crores.
The project involves the supply, installation, testing, and commissioning of the on-board KAVACH system, along with annual maintenance for 11 years. The project is set to be completed within one year.
Stock Performance
The stock has delivered positive returns of nearly 30 percent in one year, while around 18 percent of negative returns in the last six months. Moreover, the shares of CG Power have given negative returns of about 17 percent in the last one month.
About the Company
CG Power and Industrial Solutions Limited operates across two key business segments: Industrial Systems and Power Systems.
The company manufactures a wide range of products, including traction motors, propulsion systems, and signalling relays for Indian Railways, along with induction motors, drives, transformers, switchgears, and other related products for the industrial and power sectors.
Additionally, CG Power has expanded into the business of consumer appliances such as fans, pumps, and water heaters. Recognized as one of the leading players in the capital goods industry, the company serves three critical sectors driving national growth—Power, Railways, and Manufacturing. Notably, the company has maintained a debt-free status since FY23.
Written by Shivani Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
