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CG Power tanks 15% as net loss widens in December quarter

The stock dipped 15% to Rs 28.60, also its 52-week low on the BSE, after reported a consolidated net loss of Rs 150 crore in December quarter against Rs 28 crore in a year ago quarter.

SI Reporter  |  Mumbai 

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A broker reacts while trading at his computer terminal at a stock brokerage firm (Photo: Kamlesh Pednekar)

Shares of have declined 15 per cent to Rs 28.60 apiece, also their 52-week low on the BSE, after the company reported a consolidated of Rs 150 crore in December 2018 quarter (Q3FY19). The performance impacted mainly on account of an exceptional loss of Rs 117 crore.

The Gautam Thapar-led Avantha Group company had posted a loss of Rs 28 crore in the year-ago quarter.

Operational revenue during the quarter under review grew 12 per cent at Rs 1,720 crore against Rs 1,537 crore in the corresponding quarter of previous fiscal. Ebitda (earnings before interest, taxation, depreciation and amortisation) margin remain flat at 8.6 per cent over the previous year quarter.

For the quarter ended December 31, 2018, includes foreign exchange loss of Rs 22.64 crore, gain on curtailment of gratuity liability due to change in scheme of Rs 14 crore, provision for certain receivables of Rs 108 crore where the management believes that the recoveries are uncertain.

Meanwhile, the board of directors of the company at its meeting held on Tuesday, February 12, 2019, approved a part settlement of outstanding loans against 50 per cent of brand loyalty payable by the company in perpetuity aggregating to Rs 411 crore, and accepted re-schedulement of the balance loan to be settled by May 2019. Consequently, the company’s liability towards brand royalty stands reduced to 0.50 per cent from the contracted royalty of 1 per cent of its consolidated revenue.

have outstanding loans given by a wholly owned subsidiary amounting to Rs 730 crore as on December 31, 2018, the company said in notes on consolidated financial results.

At 10:18 am; the stock was down 13 per cent at Rs 29.40 on the BSE, as compared to 0.27 per cent rise in the S&P Sensex. The trading volumes on the counter nearly doubled with a combined 19 million equity shares changed hands on the and so far.


First Published: Wed, February 13 2019. 10:20 IST
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