Crompton Greaves divested its transmission & distribution business

Crompton Greaves sold its Transmission and Distribution (T&D) business outside India. The company divested its business to First Reserve International for enterprise value of Euro 115 million (Rs 8510 million).

According to company’s management, Crompton Greaves continues to actively examine its other international B2B businesses with a view to divest these businesses to enhance shareholder value.

On financial front, Crompton Greaves' revenue decreased by 12.68 per cent to Rs 6370 crore in 9MFY16 on a yearly basis. The company's EBITDA too reduced by 75.95 per cent to Rs 61 crore in 9MFY16 as compared to same period in previous fiscal year. It reported net loss of Rs 39 crore in 9MFY16 against net profit of Rs 408 crore in 9MFY15. Crompton's consolidated net debt reduced to Rs 900 crore as of Q3FY16 from Rs 1900 crore as of FY15. The company will be enabled to reduce debt and focus on its faster growing Indian businesses.

Crompton Greaves has fixed March 16, 2016 as the record date for the demerger of its Crompton Greaves Consumer Electrical. For every 1 equity share of Crompton Greaves, shareholders will receive 1 equity share of Crompton Greaves Consumer Electricals.

The share price of Crompton Greaves increased by 8.78 per cent on bourses in early trades; and is trading at Rs 146.65 on an intraday basis.

Crompton Greaves is an electrical company and provides end-to-end solutions to utilities, industries and consumers for the management and application of electrical energy. The company operates through four segments viz. power systems; consumer products; industrial systems; power distribution, self-adhesive tapes & speciality labels. Crompton Greaves provides services, such as retrofit and maintenance solution, measurement and diagnostics of electrical systems, field services, spare parts sale, training related services, condition monitoring and training modules for maintenance, among others.