CG Power Witnesses Earnings Decline and Expansion Plans

CG Power and Industrial Solutions reported a significant drop in net profit to Rs 237.85 crore in Q3 2024, partly due to discontinued operations. Total earnings increased to Rs 2,549.28 crore. The company plans a new transformer unit in western India, with an expected FY28 completion.

CG Power and Industrial Solutions Ltd faced a substantial decline of over 68% in consolidated net profit, reporting Rs 237.85 crore for the December 2024 quarter. This was largely due to adjusted earnings from discontinued operations, compared to Rs 747.67 crore in the same quarter the previous year.

The company disclosed that a profit after tax of Rs 551.07 crore from discontinued operations had significantly bolstered its consolidated earnings in the corresponding quarter a year ago. The current third-quarter profit from continuing operations, at Rs 237.85 crore, marked a 21% increase from the Rs 196.60 crore recorded a year earlier.

Total income for the quarter rose to Rs 2,549.28 crore, up from Rs 2,006.79 crore the previous year. In a strategic move for expansion, the company's board has approved the establishment of a transformer manufacturing facility with a 45,000 MVA capacity in western India, requiring an estimated investment of Rs 712 crore, aimed for completion by FY28. The board also appointed Mammen Chally as a non-executive independent director.

(With inputs from agencies.)