Crompton Greaves dropped 1.5% to Rs 167.40 at 11:30 IST on BSE after a faction of employees of the unrecognised union disrupted production at the Nasik factory opposing the wage settlement reached by the management with the recognised union.
The company made announcement after market hours yesterday, 20 May 2015.
Meanwhile, the S&P BSE Sensex was down 89.16 points or 0.32% at 27,748.05.
On BSE, so far 44,075 shares were traded in the counter as against average daily volume of 3.95 lakh shares in the past one quarter.
The stock hit a high of Rs 170.65 and a low of Rs 166.30 so far during the day. The stock had hit a 52-week high of Rs 231 on 10 September 2014. The stock had hit a 52-week low of Rs 153.10 on 9 February 2015.
The stock had underperformed the market over the past one month till 20 May 2015, declining 1.48% compared with Sensex's 0.18% fall. The scrip had also underperformed the market in past one quarter, sliding 5.69% as against Sensex's 4.77% fall.
The large-cap stock has equity capital of Rs 125.35 crore. Face value per share is Rs 2.
Crompton Greaves announced that the production at the Nasik factory of the company has been disrupted by a faction of employees of the unrecognised union by company, opposing the wage settlement reached by the management with the recognised union earlier this year in accordance with law and in terms of the specific order of the industrial court in Nasik which had directed the management not to negotiate with any trade union on any issue other than a recognised union. Crompton Greaves said that the action of the unrecognised union is in violation of the order of the industrial court in Nasik.
Crompton Greaves further said that all the necessary measures have been undertaken to guarantee the safety of employees, who have chosen not to take part in the action against the company's assets and assets of third parties in the company's premises. The company has always acted in the interest of the workmen and within the framework of the law and has urged the disruptive workmen to return to work. The management continues to work with the appropriate authorities for ending the stalemate and normalise production, the company said. In the meanwhile the company has activated its contingency plans in line with business continuity management processes intended to ensure that there is minimum disruption of orders from customers, Crompton Greaves said.
Crompton Greaves' consolidated net profit jumped 342.3% to Rs 274.29 crore on 5.7% rise in total income to Rs 3625.21 crore in Q3 Decemebr 2014 over Q3 December 2013.
CG provides end-to-end solutions, helping its customers use electrical power effectively and increase industrial productivity with sustainability. CG was established in 1937 in India; and, since then the company has been a pioneer and has retained its leadership position in the management and application of electrical energy.
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