Latest news with #CGPowerandIndustrialSolutions
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Business Standard
06-05-2025
- Business
- Business Standard
CG Power tanks 8% on heavy volumes post Q4 results; check details
CG Power and Industrial Solutions share price today Share price of CG Power and Industrial Solutions, the Murugappa Group company, tanked 8 per cent to ₹584 on the BSE in Tuesday's intraday trade, amid heavy volumes, after the company announced its March 2025 quarter results. At 03:03 PM, CG Power shares were quoting 6 per cent lower at ₹595.95, as compared to a 0.15 per cent decline in the BSE Sensex. Average trading volume on the counter jumped over six-fold today with a combined 5.5 million equity shares having changed hands on the NSE and BSE till the time of writing this report. The stock had hit a 52-week low of ₹518.35 on April 7, 2025. CG Power Q4 results 2025 The company's reported standalone earnings before interest, taxes, depreciation and amortisation (Ebitda) margin contracted 20 bps to 15.9 per cent in Q4FY25 from 16.1 per cent in Q4FY24. Ebitda margins of the industrial systems segment declined to 11.8 per cent from 14.6 per cent in the previous-year quarter. The fall in margins came amid rise in commodity prices, increasing share of Railways business, and investment in consumer business, the management said. Sales grew 23 per cent year-on-year (Y-o-Y) and 7 per cent quarter-on-quarter (Q-o-Q) at ₹2,563 crore, while profit after tax increased 15 per cent Y-o-Y and 13 per cent Q-o-Q at ₹275 crore. Order intake for Q4FY25 was at ₹3,650 crore as against ₹3,636 crore in the previous quarter i.e. Q3FY25. Unexecuted order backlog as of Q4 was ₹9,909 crore, against ₹8,952 crore in Q3. The company said the order backlog remains robust at ₹9,909 crore and continues to be on an upward trajectory, offering strong revenue visibility for the upcoming fiscal year. About Murugappa Group A 124-year-old conglomerate, with presence across India and the world, the ₹77,800-crore Murugappa Group has diverse businesses in agriculture, engineering, financial services and more. The Group has nine listed companies: Carborundum Universal, CG Power & Industrial Solutions, Cholamandalam Financial Holdings, Cholamandalam Investment & Finance Company, Coromandel International, EID Parry (India), Shanthi Gears, Tube Investments of India, and Wendt India. Brands such as Ajax, Hercules, BSA, Montra, Montra Electric, Mach City, Chola, Chola MS, CG Power and Industrial Solutions Limited, Shanthi Gears, CUMI, Gromor, Paramfos, Parry's are part of the Group's illustrious stable. Abrasives, technical ceramics, electro minerals, electric vehicles, auto components, fans, transformers, signalling equipment for railways, bicycles, fertilisers, sugar, tea and several other products make up the Group's business interests.
Business Standard
06-05-2025
- Business
- Business Standard
CG Power Q4 PAT jumps 14% YoY to Rs 275 crore
CG Power and Industrial Solutions's standalone net profit jumped 14.50% to Rs 275.49 crore on 23.03% rise in revenue from operations to Rs 2,563.40 crore in Q4 FY25 over Q4 FY24. Profit before tax rallied 20.71% to Rs 381.37 crore in Q4 FY25, compared with Rs 315.93 crore posted in Q4 FY24. EBITDA advanced 21% year on year to Rs 407 crore in the fourth quarter of FY25. EBITDA margin reduced to 15.9% in Q4 FY25 as against Rs 16.1% posted in Q4 FY24. Free cash flow generated during the quarter stood at Rs 202 crore. The companys order intake for Q4 FY25 stood at Rs 3,650 crore, reflecting a 20% year-on-year growth, while the unexecuted order backlog as of 31st March 2025 was Rs 9,909 crore, up 58% YoY. On a consolidated basis, the companys net profit rose 16.42% to Rs 271.97 crore on 25.59% rise in revenue from operations to Rs 2,752.77 crore in Q4 FY25 over Q4 FY24. CG Power & Industrial Solutions is a global enterprise providing end-to-end solutions to utilities, industries and consumers for the management and application of efficient and sustainable electrical energy. It offers products, services and solutions in two main business segments, viz. Power Systems and Industrial Systems. Shares of CG Power and Industrial Solutions tumbled 5.97% to end at Rs 597.20 on the BSE.
Time of India
28-04-2025
- Business
- Time of India
CG Power's turnaround: A strategic rescue for India's critical infra, emerging technology sectors
Just a few years ago, CG Power and Industrial Solutions was a cautionary tale in India's corporate landscape. Once a trusted name in industrial manufacturing—power equipment, transformers, and rail systems—the company spiraled into disarray following a 2019 financial scandal that exposed massive irregularities. With liabilities understated and assets overstated by thousands of crores, CG Power teetered on the edge of collapse. This was not merely the story of a failing enterprise; it was a matter of national importance. The potential foreign acquisition of CG Power posed serious concerns for India's critical infrastructure security. By 2020, CG Power was on the verge of being dismantled. Foreign interest in distressed Indian industrial assets was not uncommon—particularly from Chinese and European players. Industry observers noted keen interest from entities such as China XD Group and Siemens, both eyeing strategic footholds in India's infrastructure and power sectors. CG Power's global presence and technical expertise in transformers and railway electrification made it a prime target for acquisition. This is where the intervention by Tube Investments of India (TII) became transformational—not just for the company, but for the nation. In November 2020, TII acquired a 56.6% stake in CG Power for ₹700 crore. Though not the highest bid in absolute terms, TII's credibility, operational experience, and India-centric revival plan proved decisive. Their acquisition narrative was anchored in rebuilding and safeguarding strategic industrial capabilities, rather than short-term asset extraction. Under the quiet yet determined leadership of TII's Executive Vice Chairman, Vellayan Subbiah , the revival effort began. Subbiah's strategy was deliberate: restore institutional trust, fix the balance sheet, and reinvigorate operational strength with a long-term view. The financial clean-up was swift. With CG Power burdened by over ₹2,100 crore in debt, TII orchestrated a one-time settlement with 14 banks—₹1,100 crore was written off, ₹200 crore restructured, and ₹650 crore infused as fresh equity. Property monetization efforts filled the gap. By 2022, CG Power had become debt-free—an extraordinary pivot from near insolvency. Operationally, the turnaround was just as striking. The motors and railway businesses achieved record sales, and the transformer division revived with a swelling order book—₹3,686 crore initially, growing to ₹7,054 crore by Q1 of FY 2024-25. Profitability followed, and so did market validation, with CG Power's stock surging over 90% in 2024. However, what truly redefined CG Power's trajectory was its strategic pivot to future technologies. In March 2024, CG Power announced its entry into the semiconductor sector, partnering with Japan's Renesas Electronics and Thailand's Stars Microelectronics to establish an OSAT (Outsourced Semiconductor Assembly and Test) facility in Gujarat. With a ₹7,600 crore investment and a 92% controlling stake in the JV, CG Power signaled that it was no longer just an industrial legacy player—it was becoming a serious participant in the high-tech manufacturing ecosystem critical for India's ambitions of technological self-reliance. The momentum continued. In October 2024, CG Power acquired the radio frequency (RF) components business of Renesas Electronics America for $36 million, bringing in crucial intellectual property, engineering talent, and design capabilities. These moves firmly embedded CG Power within the broader semiconductor value chain, a strategic sector India is aggressively nurturing to reduce external dependencies in electronics and advanced manufacturing. Today, CG Power's transformation is more than an inspiring corporate turnaround—it is a case study in tech sovereignty, industrial resilience, and strategic national interest. Had TII not intervened, CG Power could have easily become a satellite entity within a foreign conglomerate's Indian portfolio, risking domestic control over key infrastructure systems and future technologies. Such a scenario would have had deep, lasting implications for supply chain autonomy, technology access, and national security. Instead, CG Power stands rejuvenated—playing a critical role not just in India's infrastructure rebuilding, but in its emerging tech economy. Its journey underscores the power of timely domestic capital intervention and strategic vision in shaping India's future industrial and technological landscape.
