CG POWER & INDUSTRIAL SOLUTIONS LTD Announces Quarterly Results (2QFY19); Net Profit Down 46.2%

Thu, 15 Nov

CG POWER & INDUSTRIAL SOLUTIONS LTD has announced its results for the quarter ended September 2018. Here is a detailed performance review of the same:

CG POWER & INDUSTRIAL SOLUTIONS LTD Quarterly Financials

No. of Mths Qtr. Ending		3 Sep-17*	3 Jun-18*	3 Sep-18*	QoQ Change	YoY Change
Net Sales	Rs m	9,597	12,039	16,500	37.1%	71.9%
Other income	Rs m	35	88	45	-49.3%	26.9%
Turnover	Rs m	9,632	12,127	16,545	36.4%	71.8%
Expenses	Rs m	8,390	10,366	14,877	43.5%	77.3%
Gross profit	Rs m	1,207	1,673	1,492	-10.8%	23.6%
Depreciation	Rs m	32	31	379	1121.9%	1098.7%
Interest	Rs m	157	152	574	277.4%	265.7%
Profit before tax	Rs m	1,054	1,578	584	-63.0%	-44.6%
Tax	Rs m	346	535	203	-62.0%	-41.2%
Profit after tax	Rs m	708	1,043	381	-63.5%	-46.2%
Gross profit margin	%	12.6	13.9	9.0
Effective tax rate	%	32.8	33.9	34.8
Net profit margin	%	7.4	8.6	2.3

Year-on-Year Performance:

• The company's operating income during the quarter grew 71.9% on a year-on-year (YoY) basis. The expenses were up by 77.3% YoY during the same period.
• The company's operating profit increased by 23.6% YoY during the quarter. Consequently, operating profit margins witnessed a decline and stood at 9.0% in 2QFY19 as against 12.6% in 2QFY18.
• Depreciation charges increased by 1098.7% and finance costs increased by 265.7% YoY, respectively.
• Other income increased by 26.9% YoY during the quarter.
• Net profit for the quarter declined by 46.2% YoY. Net profit margins during the quarter declined from 7.4% in 2QFY18 to 2.3% in 2QFY19.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter grew 37.1% on a quarter-on-quarter (QoQ) basis. The expenses were up by 43.5% QoQ during the same period.
• The company's operating profit declined by 10.8% QoQ during the quarter. Consequently, operating profit margins witnessed a decline and stood at 9.0% in 2QFY19 as against 13.9% in 1QFY18.
• Net profit for the quarter declined by 63.5% QoQ, while net profit margins declined from 8.6% in 1QFY18 to 2.3% in 2QFY19.

To see how CG POWER & INDUSTRIAL SOLUTIONS LTD has performed over the last eight quarters, please visit here.

CG POWER & INDUSTRIAL SOLUTIONS LTD Share Price Performance

Over the last one year, CG POWER & INDUSTRIAL SOLUTIONS LTD share price has moved up from Rs 79.7 to Rs 34.3, registering a Loss of Rs 45.4 or around 57.0%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 18,437.2 (up 0.7%). Over the last one year it has moved up from 18,070.5 to 18,437.2, a gain of 367 points (up 2.0%).

Overall, the S&P BSE SENSEX is up 6.8% over the year.

Current Valuations

At the current price of Rs 34.3, the price to earnings (P/E) ratio of CG POWER & INDUSTRIAL SOLUTIONS LTD stands at 24.1 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 2.8 times.