Crompton Greaves slumps on reverse turnaround in Q2

Crompton Greaves slumped 7% to Rs 61.25 at 10:10 IST on BSE after reporting consolidated net loss of Rs 10.41 crore in Q2 September 2016 compared with consolidated net profit of Rs 10.58 crore in Q2 September 2015.

The announcement was made after market hours yesterday, 7 December 2016.

Meanwhile, the BSE Sensex was up 368.02 points, or 1.4%, to 26,604.89.

More than usual volumes were traded on the counter. On the BSE, 16.14 lakh shares were traded in the counter so far, compared with average daily volume of 5.74 lakh shares in the past one quarter. The stock had hit a high of Rs 63.50 and a low of Rs 60.05 so far during the day. The stock had hit a 52-week high of Rs 88.65 on 18 August 2016. The stock had hit a 52-week low of Rs 38.79 on 12 February 2016.

The stock had underperformed the market over the past one month till 7 December 2016, falling 23.25% compared with the Sensex's 4.45% fall. The scrip had also underperformed the market in past one quarter, declining 21.18% as against the Sensex's 9.3% fall.

The mid-cap company has equity capital of Rs 125.35 crore. Face value per share is Rs 2.

Crompton Greaves' total income rose 6.78% to Rs 1545.19 crore in Q2 September 2016 over Q2 September 2015.

Separately, Crompton Greaves announced that certain conditions precedents to the share purchase agreement (SPA) executed earlier this December by the company along with its subsidiaries, CG International BV and CG International Holdings Singapore PTE with Pauwels Spaco a special purpose vehicle of First Reserve for sale of its power business in Europe, North America and Indonesia continue to remain unfulfilled and the fulfilment of it is beyond the reasonable control of the parties in the multi-geography/product line international business of the company.

After review of the situation, the parties to the sale, have decided not to further pursue the completion and the SPA consequently stands terminated. The company, however, will continue to explore alternative geography/product wise options for sale of its international power business, while continuing the strategic initiatives for improving overall operational efficiency of the international power business.

The company continues to progress with sale of the B2B automation business in Spain, UK, Ireland, France and India at an enterprise value of Euro 120 million as communicated on 7 November 2016 and towards this has made successful progress towards completion. This will ensure reduction in debt of the company and improve the company's balance sheet, it added.

Crompton Greaves is engaged in the business of power and industrial systems.

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