Crompton Rejig Spawns Surge

Restructuring at Crompton Greaves resulted in the company's share hitting the 20 per cent upper limit at Rs 36.75 today. In the last four sessions, the stock has risen 52.8 per cent from Rs 24.05 on February 20.

Volumes jumped to 6.36 lakh shares today from a low of 28,421 shares on February 21.

Analysts said that operators were active at the counter following a restructuring in the company. The rise in the stock is also attributed to the improved third quarter results.

In the last 18 months the company cut its total employee strength to 6,600 from 10,600.

For the third quarter ended December 31, 2001, Crompton Greaves posted a net profit of Rs 2.19 crore compared with a net loss of Rs 37.14 crore in the corresponding period last year. Net sales increased 12 per cent to Rs 333.13 crore from Rs 297.22 crore. Other income was at Rs 3.55 crore (Rs 1.91 crore).

Last month, the company announced that it would divest its equity stake in CG Newage Electrical.

Incorporated in April 1937 as a private limited company, Crompton Parkinson (Works) later changed its name to Crompton Greaves (CGL) in August 1966. The company is engaged in the manufacture, distribution and sale of electrical and electronic equipment/systems.

CGL's products include switchgears, motor control gears, DC motors and transformers.

The company has collaborations with Westinghouse Electric Corporation, US, for 400-kv transformers; Emile Haefely, Switzerland, for bushings; Hundt and Weber, Germany for air-circuit breakers and Mitsubishi, Japan, for gas-circuit breakers.

Also, collaborations have been entered into for its telecom division with Graphnet and SDI of the US, for faxmail.

CGL has 10 full-fledged ultra-modern facilities/laboratories for updating technology, adapting application and helping production. CGL has submitted its bid to the Department of Telecommunication for provision of cellular services in seven circles in association with Millicone, Luxembourg.