Share price of this large-cap stock and a part of Murugappa Group moved up by nearly 7 percent on BSE to hit an intraday high at Rs. 584.9 in the trading session of Tuesday, after reporting Q4 results.
With a market capitalisation of Rs. 87,157.3 crore, the share price of CG Power and Industrial Solutions Limited closed in the green at Rs. 570.65, up by 4.3 percent.
The stock has delivered positive returns of nearly 82.8 percent in the last one year and around 46.9 percent in the last six months. So far in 2024, the company has given about 27 percent of positive returns.
The fluctuations in the share prices were observed after CG Power and Industrial Solutions Limited announced the financial results for Q4 FY23-24 and FY24, through the recent filings with the stock exchanges on Monday post-market hours.
The consolidated revenue from operations increased by 15 percent YoY from Rs. 6,973 crore in FY22-23 to Rs. 8,046 crore in FY23-24, and grew by 11 percent QoQ from Rs. 1,979 crore in Q3 FY23-24 to Rs. 2,192 crore in Q4 FY23-24.
The company witnessed a rise in the net profit by 19 percent QoQ from Rs. 197 crore in Q3 FY23-24 to Rs. 234 crore in Q4 FY23-24. However, on a year-on-year basis, PAT declined by 10 percent from Rs. 260 crore in Q4 FY22-23 to Rs. 234 crore in Q4 FY23-24.
The primary driver behind the sharp rise in the share prices of CG Power was the strong growth of order inflow, rising by 45 percent YoY to Rs. 6,276 crore in Q4 FY23-24 from Rs. 4,319 crore in Q4 FY23-24.
In FY24, the company received approval from the Union Cabinet under India’s Semiconductor scheme for setting up of an Outsourced Semiconductor Assembly and Test (OSAT) facility at Sanand, Gujarat.
The estimated investment on the project over a course of five years is Rs. 7,600 crore, and funding from it will likely come from a combination of government subsidies, equity contributions and potential bank borrowings if required. The technology and joint venture partners are Stars Microelectronics in Thailand and Renesas Electronics Corporation in Japan.
Further, the company’s Board approved capex expansion of Rs. 155 crore for Switchgears in Nashik, Rs. 31 crore for Power Transformers in Bhopal, and Rs. 35 crore for HT motors in Bhopal. So far, the total expansion capex approved is Rs. 662 crore.
Established in 1937, CG Power and Industrial Solutions Limited is engaged in the business of providing products, services, and solutions to utilities, industries, and consumers for the management and application of sustainable electrical energy. The company has two main business segments: Power Systems segment and Industrial Systems segment.
Written by Shivani Singh
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