What to expect from Crompton Greaves Q2?

Power transformers major, Crompton Greaves will be posting its second quarter earnings on Wednesday, December 7. Company is likely to post below par Q2 numbers.

Sales for the second quarter are expected to remain weak with a small decline likely to be seen in Q2. Profitability is also likely to suffer with Q2 profit estimated to be down by close to 10 per cent.

Operational performance will be keenly watched as it would be indicative of the performance achieved by the company in the past half year.

Other things which would be keenly tracked will be industrial system business, margins for the quarter ending September 30 and finally the amount of losses suffered in its international business will also be an important aspect to watch out.

Management guidance on revenue growth and operational guidance for FY17 will be important too.

Pauwels Spaco deal was recently extended for the second time in a row. The company and its subsidiaries (CG International BV and CG International Holdings Singapore), on May 9, had signed a share purchase agreement (SPA) with Pauwels Spaco for acquisition of power businesses in Europe, North America, and Indonesia for an enterprise value of euro 115 million.

Ahead of the result, shares of Crompton Greaves are trading at Rs 66