Crompton Greaves Consolidated Net Profit Jumps More Than Two Folds In Q4FY'14 YoY
DSIJ Intelligence / 30 May 2014
A better performance by the company's Power systems and other income aided the bottomline to post a good growth. The net profit of the company for Q4FY14 stood at Rs 80.5 crore.
Avantha Group Company Crompton Greaves (CG) posted a decent set of numbers for its quarter ending March 2014. On consolidated basis, the net profit of the company more than doubled on yearly basis to Rs 80.5 crore for Q4FY14. The company operates in three segments namely Power Systems, Consumer Products and Industrial Systems. It was better performance of power systems and growth in other income that helped company to post such increase in the bottomline. Other income of the company saw a huge jump of 15 times on yearly basis to Rs 84 crore for January-March quarter.
Total income of the company on consolidated basis has increased by 11% on yearly basis to Rs 3766.48 crore for the quarter of January- March. Power systems that contribute 68% of the entire revenue saw 21% increase in its revenue on yearly basis to Rs 2500.92 crore. Whereas, consumer products and industrial systems that contributed 20% and 12% of entire revenue respectively saw their sales remaining flat and declining by 10% respectively on yearly basis.
In terms of segmental results, power system's posted profit of Rs 112 crore for Q4FY14, after posting loss of Rs 58.63 crore in the same quarter last year, whereas consumer product saw its profit increasing by 22% in the same period. Industrial systems witnessed a decline in its profit by 52% on yearly basis and stood at Rs 26.73 crore for Q4FY14.
The operational performance of the company has improved in the fourth quarter of FY14. EBITDA has increased by 2.5 times, whereas EBITDA margins have increased by 200 basis points. This was mainly supported by the better performance of consumer products margins improved by 200 basis points in the same period.
On standalone basis company posted sales of Rs 2036 crore, which is marginally down on yearly basis while profit increased from Rs 107 crore at the end of Q4FY13 to Rs 126 crore in Q4FY14.
Post the results share of the company was up by 2.2% and is currently trading at Rs 182.8 which discounts trailing twelve month earnings by 50x. We had recommended Crompton Greaves in our issue number six under cover story at a price of Rs 121 and continue to remain bullish on the stock.
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