Crompton Greaves tanks on disappointing Q2 earnings

Q2 operating margins declined more than 400 bps to 5.38% from 9.15% in previous year quarter.

Crompton Greaves has tanked 11% to Rs 109 in opening trades after reporting 64% year-on-year (yoy) fall in its consolidated net profit at Rs 42 crore in the September 2012 quarter due to weakness in its overseas operations. Revenues however, grew by 8% at Rs 2,924 crore on y-o-y basis.

“Power segment which contributes the bulk of business witnessed 88% fall in the profit to Rs 10 crore from Rs 93 crore in second quarter last year,” Crompton Greaves said in a statement. Operating margins of the company contracted by more than 400 bps to 5.38% from 9.15% during the recently concluded quarter.

 

The stock opened at Rs 118 and hit a high of Rs 119 on the NSE. A combined around 1.7 million shares have changed hands on the counter on both the exchanges.